Disclaimer: This article is for educational purposes and does not constitute legal advice.
Understanding Diminished Market Value in Washington
After a collision and repairs, a vehicle often loses market appeal. That difference between its pre-accident value and its post-repair value is called diminished market value (DMV). Washington law allows you to recover actual loss, which may include diminished value, under RCW 48.22.030. Always confirm coverage details with your insurer or an attorney.
Step 1: Determine Pre-Accident Market Value
1. Use at least two reputable valuation guides, such as Kelley Blue Book or NADA.
2. Check similar makes, models, mileage, condition and region.
3. Document the date you pulled the values.
Step 2: Determine Post-Repair Market Value
1. Obtain a professional appraisal from a certified appraiser.
2. Compare online listings for repaired vehicles with similar specs.
3. Note any diminished demand due to accident history.
Step 3: Calculate Diminished Market Value
Subtract the post-repair market value from the pre-accident market value:
Diminished Value = Pre-Accident Value – Post-Repair Value
Step 4: Document All Evidence
• Keep repair invoices, parts receipts and labor estimates.
• Take clear photos before, during and after repairs.
• Save the police or accident report number.
• Record all insurer communications in writing.
Relevant Washington Statute
Under RCW 48.22.030, an insurer must pay “the amount of loss” that includes the actual loss sustained by the insured. Although the statute does not list diminished value by name, Washington courts have interpreted “actual loss” to cover DMV. Read the statute: RCW 48.22.030.
Filing a Claim for Diminished Value
1. Submit your calculations, appraisals and photos to your insurer.
2. Reference the statute and any case law supporting DMV recovery.
3. If the insurer denies or undervalues your claim, consider mediation or small claims court.
Helpful Hints
- Track mileage and maintenance to support the vehicle’s pre-accident condition.
- Request a written estimate of diminished value from at least two appraisers.
- Verify your policy language for diminished value coverage or exclusions.
- Keep a detailed timeline of repairs and communications.
- Consider consulting a Washington attorney if your claim exceeds small claims limits or your insurer disputes liability.