Illinois Diminished Value Claims
How Diminished Value Claims Work
In Illinois, 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, Illinois 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. An Illinois 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. Illinois is considered a diminished value state, meaning this right is recognized under state law. For a more detailed explanation of diminished value claims, drivers can explore our Illinois diminished value guide
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01
Statute of Limitations
Illinois allows five 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 Illinois exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
04
Small Claims Court Limit
Illinois small claims court allows diminished value claims up to $10,000.
Illinois Diminished Value Law
Illinois law recognizes that a vehicle may suffer a loss in market value after a collision, even when repairs are completed. When another party is at fault, that loss may be recovered as part of a third party property damage claim.
Trailmobile Division of Pullman, Inc. v. Higgs, 12 Ill. App. 3d 323 (1973)
The Illinois Appellate Court held that when personal property is damaged but repairable, the proper measure of damages includes the reasonable cost of repairs and any remaining difference between the property’s market value before the injury and its value after repairs are completed. If the repaired property is worth less than it was before the loss, that residual loss in value is a compensable element of damages.
Illinois Diminished Value FAQs
Below are answers to common questions about Illinois diminished value claims, including how claims work, time limits, and how loss in market value is calculated after an accident.
Does Illinois allow diminished value claims?
Yes. Illinois permits third party diminished value claims when another driver is responsible for the accident.
Can I file a diminished value claim in Illinois if I was not at fault?
Yes. Illinois follows a fault based system for property damage claims. The at fault driver’s insurer may be responsible for diminished value.
Can I pursue diminished value against my own insurance in Illinois?
Generally no, unless first party diminished value coverage is specifically included in the policy.
How is diminished value calculated in Illinois?
There is no required state formula. Market comparison analysis of similar vehicles is commonly used to determine measurable loss.
What is the statute of limitations for diminished value in Illinois?
Illinois generally allows five years for property damage claims.
Do insurance companies pay diminished value in Illinois?
Yes, but insurers generally expect detailed documentation demonstrating measurable market impact.