Alaska
Diminished Value Overview
In Alaska, a vehicle that has been involved in a not at fault accident may be worth less even after repairs are completed. When another driver is responsible, Alaska law allows you to pursue compensation for that loss in value from the at fault driver’s insurance company as part of a property damage claim.
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01
Statute of Limitations
Alaska allows two years from the date of the accident to pursue a diminished value claim.
02
Third-Party Claims
Diminished value is recoverable when another driver is at fault, and you can file against the at-fault party’s insurance.
03
First-Party and Uninsured Motorist
Most first party policies do not cover diminished value, and uninsured motorist coverage does not apply to diminished value claims in Alaska.
04
Small Claims Court Limit
Alaska small claims court allows diminished value claims up to $10,000.
Alaska Diminished Value Law
Alaska recognizes that when a vehicle is damaged in a collision and repaired, the loss in its fair market value may be recoverable as part of a third-party property damage claim rather than just the cost of repairs. In Alaska, a diminished value claim is typically filed against the at-fault driver’s liability insurance and must be pursued within the applicable statute of limitations.
Willett v. State of Alaska, 826 P.2d 1142 (Alaska Ct. App. 1992)
Alaska’s appellate court acknowledged that both the cost of repairs and the loss in market value (diminution in value) are recognized methods of measuring property damage.