New Mexico
Diminished Value Overview
In New Mexico, 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, New Mexico 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. New Mexico recognizes diminished value claims when the loss is properly documented.
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01
Statute of Limitations
New Mexico 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 New Mexico exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
04
Small Claims Court Limit
New Mexico small claims court allows diminished value claims up to $10,000.
New Mexico Diminished Value Law
New Mexico recognizes diminished value as part of a third party property damage claim when a vehicle is damaged due to another party’s negligence and repairs do not fully restore the vehicle’s pre loss market value.
Copadis v. Haymond, 94 N.H. 103 (1946)
The New Mexico Supreme Court held that when personal property is damaged but not destroyed, the proper measure of damages is the lesser of the reasonable cost of necessary repairs plus any remaining decrease in fair market value after repairs, or the difference between the fair market value of the property immediately before the occurrence and its fair market value immediately after the occurrence. When repairs do not fully restore the property to its pre loss value, the remaining diminution in value is recoverable as part of the property damage claim.