Arkansas Diminished Value Claims
How Diminished Value Claims Work
In Arkansas, a vehicle involved in a not at fault accident may lose market value even after repairs are completed. When another driver is responsible for the accident, Arkansas law allows you to pursue compensation for that loss in value from the at fault driver’s insurance company as part of your property damage claim. An Arkansas diminished value claim allows you to recover the difference between what your vehicle was worth before the accident and what it is worth after repairs. Arkansas is considered a diminished value state, meaning this right is recognized under state law.
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01
Statute of Limitations
Arkansas allows three years from the date of the accident to pursue a diminished value claim.
02
Third-Party Claims
You may pursue a diminished value claim against the at fault driver’s liability insurance when another driver caused the accident.
03
First-Party and Uninsured Motorist
Most first party policies in Arkansas exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
04
Small Claims Court Limit
Arkansas small claims court allows diminished value claims up to $5,000.
Arkansas Diminished Value Law
Arkansas law recognizes that a vehicle may suffer a loss in market value after a collision even if repairs are performed. When another driver is at fault, that loss may be recovered as part of a third party property damage claim.
MFA Insurance Co. v. Citizens National Bank of Hope, 545 S.W.2d 70 (Ark. 1977)
The Arkansas Supreme Court held that when repairs do not substantially restore a vehicle to its former condition and value, the proper measure of damages is the difference in the vehicle’s value before the accident and its value after the accident and repairs.
This decision confirms that repair costs alone may not fully compensate a vehicle owner when a repaired vehicle remains worth less in the open market. Arkansas courts recognize diminished value as a legitimate element of property damage where that loss can be shown.
Arkansas Diminished Value FAQs
Below are answers to common questions about Arkansas diminished value claims, including how claims work, time limits, and how loss in market value is calculated after an accident.
Does Arkansas allow diminished value claims?
Yes. Arkansas recognizes third party diminished value claims when another driver is at fault.
Can I recover diminished value in Arkansas after repairs are complete?
Yes. Even properly repaired vehicles may experience measurable resale loss due to accident history.
Can I file diminished value against my own insurance in Arkansas?
Generally no, unless specifically provided for in the policy.
How is diminished value calculated in Arkansas?
There is no required state formula. Market based comparison of similar vehicles is commonly used to measure post accident value impact.
What is the statute of limitations for diminished value in Arkansas?
Arkansas generally allows three years for property damage claims.
Do insurance companies pay diminished value in Arkansas?
Yes, but claims supported by detailed market analysis are more likely to receive meaningful consideration.