Colorado
Diminished Value Overview
In Colorado, 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, Colorado 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.
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01
Statute of Limitations
Colorado allows two years from the date of the accident to pursue a diminished value claim.
02
Third-Party Claims
Colorado recognizes diminished value claims when another driver is at fault and allows recovery from that driver’s liability insurance.
03
First-Party and Uninsured Motorist
Colorado does not generally allow diminished value claims under your own first party policy, and uninsured or underinsured motorist coverage does not apply to diminished value.
04
Small Claims Court Limit
Colorado small claims court allows diminished value claims up to $7,500.
Colorado Diminished Value Law
Colorado law recognizes that a vehicle may suffer a loss in market value after a collision, even when repairs are performed. When another driver is at fault, that loss may be recovered as part of a third party property damage claim.
Larson v. Long, 74 Colo. 152 (1923)
The Colorado Supreme Court confirmed that evidence of depreciation in the value of an automobile resulting from an accident is admissible and that such depreciation is a legitimate element of damages.
Trujillo v. Wilson, 189 P.2d 147 (Colo. 1948)
The Colorado Supreme Court held that the proper measure of damage to personal property is the difference between the vehicle’s value immediately before the damage and its value immediately after the damage, together with any reasonable costs incurred to restore it.