Virginia
Diminished Value Overview
In Virginia, 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, Virginia 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. Virginia recognizes diminished value claims when the loss is properly documented and presented.
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01
Statute of Limitations
Virginia 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 Virginia exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
04
Small Claims Court Limit
Virginia small claims court allows diminished value claims up to $5,000.
Virginia Diminished Value Law
Virginia law expressly recognizes diminished value as a recoverable element of damages when a vehicle is damaged by another party’s negligence. When repairs do not fully restore a vehicle to its pre loss market value, the resulting loss in value may be recovered in addition to the cost of repairs as part of a third party property damage claim.
Virginia Code § 46.2 1600
Virginia statute defines diminished value as the reduced value of a vehicle due to damage and provides that an insurer may be required to compensate a third party vehicle owner for that loss in value in addition to the cost of repairs. This statutory recognition confirms that diminished value is a distinct and compensable form of property damage under Virginia law.
Averett v. Shircliff, 218 Va. 202 (1977)
The Supreme Court of Virginia held that when an automobile is damaged but not totally destroyed, the proper measure of damages is the difference between the vehicle’s market value immediately before and after the injury. Where the damage is repairable, the court recognized that damages are ordinarily measured by the reasonable cost of repairs together with any remaining diminution in value after repairs are completed.