Hawaii
Diminished Value Overview
In Hawaii, 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, Hawaii 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
Hawaii allows two years from the date of the accident to pursue a diminished value claim.
02
Third-Party Claims
Diminished value claims can be pursued 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 Hawaii do not cover diminished value, and uninsured or underinsured motorist coverage does not apply to diminished value claims.
04
Small Claims Court Limit
Hawaii small claims court allows diminished value claims up to $5,000.
Hawaii Diminished Value Law
Hawaii law recognizes that a vehicle may suffer a loss in market value after a collision. When another party is at fault, damages are intended to restore the injured party as nearly as possible to the position they would have been in had the loss not occurred.
Richards v. Kailua Auto Machine Service, 10 Haw. App. 613 (1994)
The Hawaii Intermediate Court of Appeals held that damages for tortious property damage may include both the reasonable cost of repairs and the difference between the vehicle’s value before the accident and its value after repairs are completed, so long as the total does not exceed the vehicle’s pre loss market value.