Diminished value claims in Colorado

Can you claim diminished value in Colorado?

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

Third-party: if damaged property is repairable, the plaintiff recovers the reasonable cost of repair plus the decrease in market value of the property as repaired, measured at the time of the occurrence (Airborne, Inc. v. Denver Air Center, Colo. App. 1992, an aircraft case citing Trujillo v. Wilson, Colo. 1948, which allowed both repairs and diminution for a car). First-party: Hyden v. Farmers Ins. Exch. (Colo. App. 2000) held that a 'like kind and quality' promise requires giving the insured, through repair, replacement and/or compensation, the means to acquire a vehicle substantially similar in function and value. The Tenth Circuit is reported to have enforced an express diminished-value exclusion (Lovell v. State Farm, 2006), so the result depends on policy language.

Source: Airborne, Inc. v. Denver Air Ctr., Inc., 832 P.2d 1086 (Colo. App. 1992); Trujillo v. Wilson, 117 Colo. 430, 189 P.2d 147 (1948); Hyden v. Farmers Ins. Exch., 20 P.3d 1222 (Colo. App. 2000); Lovell v. State Farm Mut. Auto. Ins. Co., 466 F.3d 893 (10th Cir. 2006)

See which states allow diminished value claims.

Does your own insurance pay diminished value in Colorado?

Short answer: There is no clear Colorado 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 Colorado rule above is the starting point; your policy wording can narrow it.

How to file a diminished value claim in Colorado

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 Colorado?

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 Colorado

Short answer: You generally have 3 years to sue the at-fault driver for damage to your car (C.R.S. § 13-80-101(1)(n)(I)). Send your written demand well before then.

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

Source: C.R.S. § 13-80-101(1)(n)(I) (tort actions for bodily injury or property damage arising out of the use or operation of a motor vehicle: 3 years)

How to file an insurance complaint in Colorado

Short answer: File a free complaint with the Colorado Division of Insurance 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.