Diminished value claims in Kentucky

Can you claim diminished value in Kentucky?

Short answer: Yes, from the at-fault driver's insurer (806 KAR 12:095 Section 7(2)).

Kentucky's claims regulation sets the measure of damages in a third-party vehicle loss as the difference between fair market value immediately before and after the loss (reduced by the claimant's comparative fault), with repair estimates usable as evidence. The same subsection says first-party damages are governed by the policy and may not include any measure of damages not specifically provided in it.

Source: 806 KAR 12:095 Section 7(2)

See which states allow diminished value claims.

Does your own insurance pay diminished value in Kentucky?

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

How to file a diminished value claim in Kentucky

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 Kentucky?

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 Kentucky

Short answer: You generally have 2 years to sue the at-fault driver for damage to your car (KRS 413.125). Send your written demand well before then.

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

Source: KRS 413.125 (taking, detaining or injuring personal property)

How to file an insurance complaint in Kentucky

Short answer: File a free complaint with the Kentucky 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.