Colorado Diminished Value Claims
How Diminished Value Claims Work
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. A Colorado 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. Colorado is considered a diminished value state, meaning this right is recognized under state law.
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01
Statute of Limitations
Colorado allows three 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.
Colorado Diminished Value FAQs
Below are answers to common questions about Colorado diminished value claims, including how claims work, time limits, and how loss in market value is calculated after an accident.
Does Colorado allow diminished value claims?
Yes. Colorado permits third party diminished value claims when another driver is responsible for the accident.
Can I file a diminished value claim in Colorado if I was not at fault?
Yes. Colorado follows a fault based system. The at fault driver’s insurer may be responsible for diminished value in addition to repair costs.
Can I pursue diminished value against my own insurance in Colorado?
Generally no, unless first party diminished value coverage is specifically included in the policy.
How is diminished value calculated in Colorado?
There is no mandated 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 Colorado?
Colorado generally allows three years for property damage claims.
Do insurance companies pay diminished value in Colorado?
Yes, but claims supported by detailed market evidence are more likely to receive meaningful consideration.