Wisconsin
Diminished Value Overview
In Wisconsin, 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, Wisconsin 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. Wisconsin is considered a diminished value recovery state, meaning this right is recognized when the loss is properly supported.
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01
Statute of Limitations
Wisconsin 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 Wisconsin do not cover diminished value, and uninsured or underinsured motorist coverage generally does not apply to diminished value claims.
04
Small Claims Court Limit
Wisconsin small claims court allows diminished value claims up to $10,000.
Wisconsin Diminished Value Law
Wisconsin courts recognize that a vehicle does not necessarily return to its pre loss market value simply because it has been repaired. When a vehicle is damaged due to another party’s negligence and repairs fail to restore the vehicle to its original value, the resulting loss in market value may be recovered as part of a third party property damage claim. Wisconsin follows the principle that damages should place the injured party in as good a position as they would have been in had the loss not occurred.
Hellenbrand v. Hilliard, 2004 WI App 151 (Wis. Ct. App.)
The Wisconsin Court of Appeals held that when repairs to personal property do not restore the property to its pre injury value, and the plaintiff demonstrates that he or she has suffered or will suffer a loss in value as a result, damages for that proven loss in value are recoverable. The court emphasized that the purpose of property damage compensation is to make the owner whole for the actual economic loss caused by another’s negligence, not merely to reimburse repair costs.
The court further recognized that the proper measure of damages may include diminution in value when the evidence shows that a repaired vehicle remains worth less than it was prior to the loss.