Mississippi
Diminished Value Overview
In Mississippi, 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, Mississippi 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
Mississippi allows three 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 Mississippi do not cover diminished value, and uninsured or underinsured motorist coverage generally does not apply to diminished value claims.
04
Small Claims Court Limit
Mississippi small claims court allows diminished value claims up to $3,500.
Mississippi Diminished Value Law
Mississippi courts recognize that a vehicle does not automatically return to its original market value simply because repairs have been completed. When a vehicle is damaged due to another party’s negligence, any remaining loss in market value may be recovered as part of a third party property damage claim.
Potomac Insurance Co. v. Wilkinson, 57 So. 2d 158 (Miss. 1952)
The Mississippi Supreme Court held that when repairs do not fully restore a vehicle’s market value, the remaining loss in value is a compensable element of damages and may be recovered in addition to the cost of repairs.
Ishee v. Dukes Ford Co., 380 So. 2d 760 (Miss. 1980)
The court reaffirmed that the proper measure of damages includes the total diminution in market value caused by the loss. When repairs fail to return the vehicle to its pre loss value, the remaining diminished value is recoverable, provided total damages do not exceed the vehicle’s pre loss value.