Iowa
Diminished Value Overview
In Iowa, 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, Iowa 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
Iowa 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 Iowa do not cover diminished value, and uninsured or underinsured motorist coverage generally does not apply to diminished value claims.
04
Small Claims Court Limit
Iowa small claims court allows diminished value claims up to $6,500.
Iowa Diminished Value Law
Iowa law recognizes that a vehicle may suffer a loss in market value after a collision, even when repairs are performed. When another party is at fault, that loss may be recovered as part of a third party property damage claim.
Pappenheim v. Lovell, 530 N.W.2d 668 (Iowa 1995)
The Iowa Supreme Court established that when a repaired vehicle cannot be returned to the same condition and value it had before the accident, damages are measured by the difference in market value before and after the injury, along with reasonable loss of use. This standard expressly allows recovery for diminished value when repairs fail to fully restore the vehicle.
Hawkeye Motors, Inc. v. McDowell, 541 N.W.2d 914 (Iowa Ct. App. 1995)
The Iowa Court of Appeals held that when repairs cannot restore a vehicle to its pre accident condition, the proper measure of damages includes the difference between the vehicle’s reasonable market value before the loss and its value after repairs are completed. This remaining loss in value is a compensable element of damages.