Diminished value laws by state (2026)
Diminished value is recoverable from the at-fault driver's insurer in 31 jurisdictions, limited in 6 (Massachusetts, Michigan, Nebraska, New York, Tennessee and West Virginia), not recoverable in North Dakota and unclear in 13. On your own policy, it may be recoverable only in Georgia, Oregon and Washington, depending on the policy wording; it is generally not covered in 24 jurisdictions and unclear in 24.
Last reviewed from statutes, regulations and Department of Insurance publications.
Key findings
- Diminished value is recoverable from the at-fault driver's insurer in 31 jurisdictions, limited in 6 (Massachusetts, Michigan, Nebraska, New York, Tennessee and West Virginia), not recoverable in North Dakota and unclear in 13.
- On your own policy, it may be recoverable only in Georgia, Oregon and Washington, depending on the policy wording; it is generally not covered in 24 jurisdictions and unclear in 24.
- The deadline to sue over damage to a car runs from 2 years (17 jurisdictions) to 10 years (Rhode Island, a figure we have not checked against the statute text); 3 years is most common (18 jurisdictions).
Diminished value rules in every state
What the labels mean
- Recoverable
- The state's courts or rules allow the claim. You still have to prove the loss with evidence.
- Limited
- Allowed only in some situations, for example new or rare cars, or within a capped claim. The state page explains the limit.
- Not recoverable
- State law generally does not allow it on top of the repair cost.
- Unclear
- We found no decision or rule that settles it either way. Unsettled is not the same as barred.
- May be covered (own policy)
- The state's courts or rules allow it under some policies. Your own policy wording decides.
States where your own policy may pay
How to prove the loss
Where a claim is allowed, the insurer still pays only what you can show. Written dealer offers on the repaired car, an independent appraisal and the accident entry on its history report carry more weight than a formula. How to file a diminished value claim · Why the 17c formula comes up short
How to cite
Fairmark, Diminished value laws by state, fairmarkvalue.com/diminished-value-laws-by-state, last reviewed November 4, 2026.
Free to reuse under CC BY 4.0 with a link to this page. Download the full dataset: CSV · JSON.
General information, not legal advice. Rules change; confirm with your state Department of Insurance or a local attorney.