Indiana Diminished Value Claims
How Diminished Value Claims Work
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. An Indiana 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. Indiana recognizes diminished value as part of a third party 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 exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
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.
Indiana Diminished Value FAQs
Below are answers to common questions about Indiana diminished value claims, including how claims work, time limits, and how loss in market value is calculated after an accident.
Does Indiana allow diminished value claims?
Yes. Indiana recognizes third party diminished value claims when another driver is responsible for the accident.
Can I file a diminished value claim in Indiana if I was not at fault?
Yes. Indiana follows a fault based system. 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 Indiana?
Generally no, unless first party diminished value coverage is specifically included in the policy.
How is diminished value calculated in Indiana?
There is no mandated state formula. Market based comparison of similar vehicles is commonly used to measure resale impact.
What is the statute of limitations for diminished value in Indiana?
Indiana generally allows two years for property damage claims.
Do insurance companies pay diminished value in Indiana?
Yes, but claims supported by strong market evidence are more likely to receive meaningful consideration.