Massachusetts
Diminished Value Overview
In Massachusetts, whether you can recover diminished value after a not at fault accident depends on the insurance policy involved and how the claim is presented. Courts have recognized that a vehicle may lose value even after proper repairs, but the vehicle owner must prove that the loss exists and establish the amount of that loss with supporting evidence.
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01
Statute of Limitations
Massachusetts allows three years from the date of the accident to pursue a diminished value claim.
02
Third-Party Claims
Diminished value may be recoverable when another driver is at fault. Recovery depends on the version of the Massachusetts auto insurance policy in effect at the time of the accident. In certain situations, recovery may require pursuing the at fault driver directly rather than relying on insurance coverage alone.
03
First-Party and Uninsured Motorist
First party policies in Massachusetts do not cover diminished value, and uninsured or underinsured motorist coverage does not apply to diminished value claims.
04
Small Claims Court Limit
Massachusetts small claims court allows diminished value claims up to $7,000.
Massachusetts Diminished Value Law
Massachusetts law recognizes that a vehicle may suffer a loss in market value after a collision even when repairs are completed. Whether diminished value is recoverable depends on the applicable automobile insurance policy and the circumstances of the claim.
Massachusetts Supreme Judicial Court (SJC) Decision – October 2021
2008 Standard Massachusetts Automobile Insurance Policy
In October 2021, the Massachusetts Supreme Judicial Court held that diminished value may be recoverable from an at fault driver’s insurer under claims governed by the 2008 edition of the Standard Massachusetts Automobile Insurance Policy, provided the claimant can prove that the vehicle suffered a loss in market value after being fully repaired and establish the amount of that loss.
Massachusetts Supreme Judicial Court (SJC) Decision – January 2025
2016 Standard Massachusetts Automobile Insurance Policy
In January 2025, the SJC ruled that under the 2016 edition of the Standard Massachusetts Automobile Insurance Policy, insurers are not required to cover inherent diminished value claims under the policy itself. However, the court confirmed that the at fault driver may still be personally responsible for diminished value where a post repair loss in market value can be independently established.