Hawaii Diminished Value Claims
How Diminished Value Claims Work
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. A Hawaii 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. Hawaii recognizes diminished value as part of a third party property damage claim.
Save Time
Claim Support
Market Accuracy
Insurance Ready
Every report is prepared using our Premier Market Comparison Method, built on real world market data and structured for insurance review.
WORKING TOGETHER
We team up with you to provide clear, accurate diminished value guidance and documentation you can confidently use with insurers or in court.
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 exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
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.
Hawaii Diminished Value FAQs
Below are answers to common questions about Hawaii diminished value claims, including how claims work, time limits, and how loss in market value is calculated after an accident.
Does Hawaii allow diminished value claims?
Yes. Hawaii permits third party diminished value claims when another driver is responsible for the accident.
Can I file a diminished value claim in Hawaii if I was not at fault?
Yes. Hawaii follows a fault based system for property damage claims. 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 Hawaii?
Generally no, unless first party diminished value coverage is specifically included in the policy.
How is diminished value calculated in Hawaii?
There is no mandated state formula. Market comparison analysis of similar vehicles with and without accident history is commonly used to determine measurable resale impact. In island markets like Hawaii, local vehicle availability and demand can also influence valuation.
What is the statute of limitations for diminished value in Hawaii?
Hawaii generally allows two years for property damage claims.
Do insurance companies pay diminished value in Hawaii?
Yes, but insurers typically require clear documentation demonstrating measurable market loss before issuing compensation.
Still have a question?
Although Hawaii does not share land borders with other states, drivers relocating or purchasing vehicles from the mainland may want to review diminished value claim rules in California, Washington, and Oregon.