Minnesota Diminished Value Claims
How Diminished Value Claims Work
In Minnesota, 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, Minnesota 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. A Minnesota 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. Minnesota recognizes diminished value claims when they are properly documented and filed within the applicable time limit.
Save Time
Claim Support
Market Accuracy
Insurance Ready
Every report is prepared using our Premier Market Comparison Method, built on real world market data and structured for insurance review.
WORKING TOGETHER
We team up with you to provide clear, accurate diminished value guidance and documentation you can confidently use with insurers or in court.
01
Statute of Limitations
Minnesota allows six 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 Minnesota do not cover diminished value, and uninsured or underinsured motorist coverage does not apply to diminished value claims.
04
Small Claims Court Limit
Minnesota small claims court allows diminished value claims up to $15,000.
Minnesota Diminished Value Law
Minnesota courts recognize that a vehicle does not automatically return to its original market value simply because it has been repaired. When a vehicle is damaged due to another party’s negligence, any resulting loss in market value may be recovered as part of a third party property damage claim.
Rinkel v. Lee’s Plumbing & Heating Co., 257 Minn. 14, 99 N.W.2d 779 (1959)
The court reaffirmed that when repairs fail to restore damaged property to its pre loss value, the owner is entitled to recover the remaining diminution in market value, provided the total recovery does not exceed the applicable measure of damages.
O’Connor v. Schwartz, 304 Minn. 155, 229 N.W.2d 511 (1975)
The Minnesota Supreme Court confirmed that damages to personal property may be measured by the difference between the property’s fair market value immediately before and after the damage. The court recognized that repair costs alone may be insufficient where repairs do not fully restore the property’s value.
Minnesota Diminished Value FAQs
Below are answers to common questions about Minnesota diminished value claims, including how claims work, time limits, and how loss in market value is calculated after an accident.
Does Minnesota allow diminished value claims?
Yes. Minnesota permits third party diminished value claims when another driver is responsible for the accident.
Can I file a diminished value claim in Minnesota if I was not at fault?
Yes. Minnesota follows a fault based system for property damage claims. 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 Minnesota?
Generally no, unless first party diminished value coverage is specifically included in the policy.
How is diminished value calculated in Minnesota?
There is no mandated state formula. Market comparison analysis of similar vehicles is commonly used to determine measurable resale impact.
What is the statute of limitations for diminished value in Minnesota?
Minnesota generally allows six years for property damage claims.
Do insurance companies pay diminished value in Minnesota?
Yes, but insurers typically require clear documentation demonstrating measurable market loss before issuing compensation.
Still have a question?
Drivers near Minnesota’s borders may encounter different diminished value claim rules in North Dakota, South Dakota, Iowa, and Wisconsin.