Do I file with my insurance or theirs?

Usually theirs. Diminished value after a not-at-fault accident is typically a third-party claim against the at-fault driver's insurance company. A few states allow first-party claims against your own insurer.

Will filing a diminished value claim raise my rates?

Because it's generally a third-party claim against the at-fault driver's insurer, it shouldn't affect your own premium the way an at-fault claim might. Rules vary, so confirm for your situation.

Do I need an appraiser or a lawyer?

Not always. Many drivers handle smaller claims themselves with solid comparable-market evidence. Larger or disputed claims may be worth an independent appraiser, and court-bound cases may warrant legal help.

How to File a Diminished Value Claim

To file a diminished value claim, document your car's repairs and accident history, get a market-based valuation of the value it lost, and send a written demand to the at-fault driver's insurance company — then negotiate, and escalate through the appraisal clause or small claims court if they lowball you.

Step 1 — Confirm you're eligible

Diminished value claims work best when another driver was at fault, your car had real market value before the crash, and the damage was significant enough to appear on a history report. If your car was totaled, this is a different process (see our guide on disputing a total-loss offer).

Step 2 — Gather your evidence

The repair estimate and final repair invoice showing what was damaged and fixed.
Photos of the damage before repair.
Your vehicle's history report showing the reported accident.
A market-based valuation of the diminished value, backed by comparable local listings.

Step 3 — Put a number on the loss

A demand is only as strong as the evidence behind it. Rather than quoting a formula, show the at-fault insurer real comparable vehicles — similar cars near you with and without accident histories — and let the gap justify your figure. A clear, market-based report is much harder for an adjuster to dismiss than a round number.

Step 4 — Send a written demand

Write to the at-fault driver's insurance company (the third-party claim). State the claim number, that you're claiming inherent diminished value, the amount, and attach your evidence. Keep it factual and professional, and keep copies of everything.

Step 5 — Negotiate, then escalate if needed

Insurers often open low or deny outright. Counter with your evidence. If you can't reach a fair number, your options depend on your state and policy but commonly include invoking the appraisal clause (independent appraisers and a neutral umpire settle the value) or filing in small claims court. For larger or disputed claims, an independent appraiser can handle the fight directly.

This is general information, not legal advice — deadlines and available remedies vary by state.

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Frequently asked questions

Do I file with my insurance or theirs?: Usually theirs. Diminished value after a not-at-fault accident is typically a third-party claim against the at-fault driver's insurance company. A few states allow first-party claims against your own insurer.
Will filing a diminished value claim raise my rates?: Because it's generally a third-party claim against the at-fault driver's insurer, it shouldn't affect your own premium the way an at-fault claim might. Rules vary, so confirm for your situation.
Do I need an appraiser or a lawyer?: Not always. Many drivers handle smaller claims themselves with solid comparable-market evidence. Larger or disputed claims may be worth an independent appraiser, and court-bound cases may warrant legal help.

This guide is general information, not legal advice. Rules, deadlines, and eligibility for diminished value and total-loss claims vary by state and by insurance policy.