Diminished value claims in Indiana

Can you claim diminished value in Indiana?

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

First-party: the Indiana Supreme Court held that a policy limiting coverage to the lesser of actual cash value or the cost to repair or replace with property of like kind and quality does not obligate the insurer to pay for diminution in value after repair (Allgood v. Meridian Sec. Ins. Co., 836 N.E.2d 243 (Ind. 2005)). Under uninsured motorist coverage, which covers the uninsured driver's liability to the insured, the insurer that chooses to repair must also pay any diminished value, up to the policy limits (Dunn v. Meridian Mut. Ins. Co., 836 N.E.2d 249 (Ind. 2005)). Third-party: the fundamental measure for damaged but not destroyed property is the reduction in fair market value, which may be proved by before-and-after values, by repair cost where repair restores full value, or by repair cost combined with before-and-after-repair values where repair does not restore full value (Wiese-GMC, Inc. v. Wells, 626 N.E.2d 595 (Ind. Ct. App. 1993); see Dado v. Jeeninga, 743 N.E.2d 291 (Ind. Ct. App. 2001)).

Source: Allgood v. Meridian Sec. Ins. Co., 836 N.E.2d 243 (Ind. 2005) (case text); Dunn v. Meridian Mut. Ins. Co., 836 N.E.2d 249 (Ind. 2005) (case text); Wiese-GMC, Inc. v. Wells, 626 N.E.2d 595 (Ind. Ct. App. 1993) (case text); Dado v. Jeeninga, 743 N.E.2d 291 (Ind. Ct. App. 2001)

See which states allow diminished value claims.

Does your own insurance pay diminished value in Indiana?

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

How to file a diminished value claim in Indiana

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 Indiana?

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 Indiana

Short answer: You generally have 2 years to sue the at-fault driver for damage to your car (Ind. Code s. 34-11-2-4(a)). Send your written demand well before then.

Property damage claims in Indiana generally must be filed in court within 2 years of the accident.

Source: Ind. Code s. 34-11-2-4(a) (injury to personal property: 2 years after accrual)

How to file an insurance complaint in Indiana

Short answer: File a free complaint with the Indiana Department of Insurance, 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.