Diminished value claims are usually paid by the at-fault driver's liability insurer. When that driver has no insurance, your options depend on your own coverage, your state, and the driver's ability to pay.
Being hit by an uninsured driver complicates every part of a claim, and diminished value is no exception. Without a liability insurer to pay, you have to look elsewhere for recovery. Here are the paths that may be available.
Option 1: Uninsured Motorist Property Damage Coverage
Uninsured motorist property damage coverage, often called UMPD, is available in many states as part of your own policy. It is designed to pay for damage to your vehicle caused by an uninsured driver.
Whether UMPD includes diminished value depends on your state and your policy language. Some states and policies include it, and others limit UMPD to repair costs. UMPD may also have its own deductible and coverage limit.
- Check your declarations page to see whether you have UMPD
- Read the UMPD section of your policy for how "damage" or "loss" is defined
- Ask your insurer in writing whether diminished value is covered under your UMPD
- Check your state guide for how your state treats first-party diminished value
Option 2: Collision Coverage
Collision coverage pays to repair your vehicle regardless of fault, minus your deductible. In most states, collision coverage does not include diminished value, because policies typically pay the cost to repair rather than the loss in market value. Your insurer may pursue the uninsured driver to recover what it paid, and your deductible, through subrogation.
Option 3: A Claim Directly Against the Driver
You can generally pursue the at-fault driver personally for your losses, including diminished value. For many claims, that means small claims court. The practical challenge is collecting: a driver without insurance may not have the means to pay a judgment.
See taking a diminished value claim to small claims court.
Underinsured Drivers
If the at-fault driver had insurance but not enough to cover all of your damages, the remaining amount may be recoverable through underinsured motorist coverage in some states, or from the driver personally. Property damage limits can be low in some states, so this situation is more common than many drivers expect.
Documentation Still Matters
Whatever path you take, document the loss the same way you would for any diminished value claim:
- The police report identifying the at-fault driver and noting the lack of insurance
- The final repair invoice and photos
- An independent, market-based diminished value appraisal
- All correspondence with your insurer
Our guide on how to file a diminished value claim explains each step.
Frequently Asked Questions
Does uninsured motorist coverage pay for diminished value?
Sometimes. It depends on your state and the wording of your policy. Ask your insurer in writing and review the UMPD section of your policy.
Can I sue an uninsured driver for diminished value?
Generally, yes. The practical question is whether the driver can pay a judgment. Small claims court is often the most efficient route for smaller amounts.
Should I add UMPD to my policy?
If it is available in your state, UMPD can protect you when the at-fault driver has no insurance. Discuss the cost and coverage with your insurance agent.
Want to Know What Your Vehicle Lost in Value?
Premier Vehicle Valuation Specialists prepares independent, market-based diminished value reports for $299.
We review your repair information first. If the numbers do not support a claim, we will tell you before you pay for a report.
This article provides general information about vehicle property damage claims and is not legal or tax advice. Insurance requirements, claim procedures, and available remedies vary by state, policy, and individual circumstances.
