Indiana
Diminished Value Overview
In Indiana, 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, Indiana 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
Indiana allows two years from the date of the accident to pursue a diminished value claim.
02
Third-Party Claims
Diminished value is recoverable when another driver is at fault, and you can file against the at-fault party’s insurance.
03
First-Party and Uninsured Motorist
Most first party policies in Indiana do not cover diminished value, and uninsured or underinsured motorist coverage generally does not apply to diminished value claims.
04
Small Claims Court Limit
Indiana small claims court allows cases up to $8,000.
Indiana Diminished Value Law
Indiana law recognizes that a vehicle may suffer a loss in fair market value after a collision, even when it is repaired. When another party is at fault, that loss may be recovered as part of a third party property damage claim.
Wiese GMC, Inc. v. Wells, 626 N.E.2d 595 (Ind. Ct. App. 1993)
The Indiana Court of Appeals held that when personal property is damaged but not destroyed, the fundamental measure of damages is the reduction in fair market value caused by the loss. Where repairs do not fully restore the property’s pre loss value, diminished value may be proven through evidence of the vehicle’s value before the loss and its value after repairs are completed.
Indiana Code § 27-7-5-2
Indiana’s insurance code requires uninsured and underinsured motorist property damage coverage for insureds who are legally entitled to recover damages for injury to or destruction of property. This statute supports recovery for diminished value when the at fault driver is uninsured or underinsured and the insured can establish a loss in vehicle value.
Dunn v. Meridian Mutual Insurance Co., 836 N.E.2d 249 (Ind. 2005)
The Indiana Supreme Court held that diminished value is a covered element of damage under uninsured motorist property damage coverage. The court confirmed that loss in vehicle value may be recovered when the at fault driver lacks sufficient insurance.