Washington Diminished Value Claims
Diminished Value Overview
In Washington, 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, Washington 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. Washington recognizes diminished value claims when the loss is properly documented and presented.
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01
Statute of Limitations
Washington 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 Washington exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
04
Small Claims Court Limit
Washington small claims court allows diminished value claims up to $10,000.
Washington Diminished Value Law
Washington courts recognize that damage to personal property is measured by the loss in market value caused by the injury. When a vehicle is damaged due to another party’s negligence, the proper measure of damages is the difference between the vehicle’s fair market value immediately before the loss and its value after the loss. Repair costs may be considered as evidence of damage, but they do not limit recovery when repairs fail to restore the vehicle’s pre loss market value. As a result, when a repaired vehicle remains worth less than it was before the accident, the remaining loss in value is recoverable as part of a third party property damage claim.
McCurdy v. Union Pacific R.R., 68 Wash. 2d 457 (1966)
The Washington Supreme Court held that the proper measure of damage to personal property is the difference in market value immediately before and immediately after the injury. The court explained that while the reasonable cost of repairs may be considered in determining damages, repair costs are not exclusive and do not control where they fail to fully compensate for the loss in value. This decision establishes that damages are based on actual market loss, not merely the expense of repairs.
Sheridan v. General Electric Co., 3 Wash. App. 669 (1970)
The Washington Court of Appeals reaffirmed that damages must compensate an injured party for the actual loss in value suffered. The court made clear that recovery is not limited to repair costs alone when those repairs do not restore the property to its pre injury value. Where a loss in market value remains after repairs, that loss represents real economic damage that is compensable under Washington law.
Washington Diminished Value FAQs
Below are answers to common questions about Washington diminished value claims, including how claims work, time limits, and how loss in market value is calculated after an accident.
Does Washington allow diminished value claims?
Yes. Washington allows third party diminished value claims. If you were not at fault, you may pursue compensation from the at fault driver’s insurer for the loss in market value after repairs.
Can I file a diminished value claim in Washington if I was not at fault?
Yes. Washington follows a fault based system. The at fault driver’s insurance company may be responsible for diminished value in addition to repair costs.
Can I file a diminished value claim against my own insurance in Washington?
In most cases, no. Washington policies generally do not include first party diminished value coverage unless specifically written into the policy.
How is diminished value calculated in Washington?
There is no official Washington formula. Insurance companies often use internal models. Premier Diminished Value Specialists uses a market comparison method analyzing real vehicles with and without accident history to determine actual loss.
What is the statute of limitations for diminished value in Washington?
Washington generally allows three years for property damage claims. It is best to pursue the claim immediately after repairs are completed.
Do insurance companies pay diminished value in Washington?
Yes, but without supporting documentation claims may be denied. A professional market based report strengthens your position.