Diminished value claims in Illinois

Can you claim diminished value in Illinois?

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

Third-party: for repairable damage, if the property is worth less after repair than before, damages are the difference in market value before the injury and in its repaired condition, in addition to reasonable repair costs (Trailmobile Div. of Pullman, Inc. v. Higgs, 12 Ill. App. 3d 323 (1973)). First-party: the court held, as a matter of law, that Allstate's unambiguous 'repair or replace' policy requires restoring the car to pre-accident mechanical function and condition and does not require paying for a properly repaired vehicle's loss in market value, even though Allstate did not dispute that 'loss' could encompass diminished value (Sims v. Allstate Ins. Co., 365 Ill. App. 3d 997, 851 N.E.2d 701 (5th Dist. 2006)).

Source: Trailmobile Div. of Pullman, Inc. v. Higgs, 12 Ill. App. 3d 323 (1973) (case text); Sims v. Allstate Ins. Co., 365 Ill. App. 3d 997, 851 N.E.2d 701 (5th Dist. 2006) (case text) · source

See which states allow diminished value claims.

Does your own insurance pay diminished value in Illinois?

Short answer: Usually not. The claim is normally against the at-fault driver's insurer.

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 Illinois rule above is the starting point; your policy wording can narrow it.

How to file a diminished value claim in Illinois

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 Illinois?

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 Illinois

Short answer: You generally have 5 years to sue the at-fault driver for damage to your car (735 ILCS 5/13-205). Send your written demand well before then.

Property damage claims in Illinois generally must be filed in court within 5 years of the accident.

Source: 735 ILCS 5/13-205 (actions to recover damages for an injury done to property, real or personal: 5 years)

How to file an insurance complaint in Illinois

Short answer: File a free complaint with the Illinois Department 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.