Diminished value claims in Arkansas

Can you claim diminished value in Arkansas?

Short answer: Yes, from the at-fault driver's insurer.

Third-party: the measure of damage to personal property is the difference in fair market value immediately before and immediately after the occurrence, and the reasonable cost of repairs may be considered in fixing that difference (Daughhetee v. Shipley, Ark. 1984). First-party: MFA Ins. Co. v. Citizens Nat'l Bank of Hope (Ark. 1977), a fire-damage case, allowed the before-and-after value measure under a policy where evidence showed repairs with like kind and quality parts would not restore the former market value, making it a fact question. Most current policies have different wording or DV exclusions, so the outcome depends on policy language.

Source: Daughhetee v. Shipley, 282 Ark. 596, 669 S.W.2d 886 (1984); MFA Ins. Co. v. Citizens Nat'l Bank of Hope, 260 Ark. 849, 545 S.W.2d 70 (1977)

See which states allow diminished value claims.

Does your own insurance pay diminished value in Arkansas?

Short answer: There is no clear Arkansas rule either way, so check your policy wording.

A claim on your own collision coverage depends on what your policy promises. Read its definition of "loss" and any exclusion for diminution in value before you ask. The Arkansas rule above is the starting point; your policy wording can narrow it.

How to file a diminished value claim in Arkansas

1. Finish the repair and get the final invoice showing every part and labor operation.
2. Document the pre-accident value of your exact trim and mileage.
3. Collect proof of the loss: a vehicle history report showing the accident, written trade-in offers, or an independent appraisal.
4. Send a written demand to the at-fault driver's insurer with a specific amount and your evidence.
5. If they refuse or lowball, you can sue the at-fault driver in small claims court before the deadline.

How to document the value before and after

• Before: save listings for cars of the same year, trim and mileage from just before the accident, and any records of options, upgrades and maintenance.
• After: get at least two written trade-in or purchase offers from dealers who see the repaired car and its history report.
• Keep the repair invoice, photos of the damage and the history report entry; they show what a buyer will see.

Step-by-step help with each part: how to file a diminished value claim.

Will the insurer use the 17c formula in Arkansas?

Many adjusters calculate diminished value by capping it at 10% of the car's value and then applying damage and mileage multipliers. The result is often a few hundred dollars. It is not based on what buyers actually pay, and you do not have to accept it. How the 17c formula works.

Deadline to file a diminished value claim in Arkansas

Short answer: You generally have 3 years to sue the at-fault driver for damage to your car (Ark. Code Ann. § 16-56-105(6)). Send your written demand well before then.

Property damage claims in Arkansas generally must be filed in court within 3 years of the accident.

Source: Ark. Code Ann. § 16-56-105(6) (all actions for taking or injuring any goods or chattels: 3 years)

How to file an insurance complaint in Arkansas

Short answer: File a free complaint with the Arkansas Insurance Department, Consumer Services Division online. It asks the insurer for a written response, but it cannot set the amount you are owed.

If an insurer ignores your claim or will not explain a refusal, the state insurance regulator takes complaints.