Diminished value claims in Massachusetts

Can you claim diminished value in Massachusetts?

Short answer: Only in limited cases against the at-fault driver's insurer.

McGilloway v. Safety Ins. Co. (SJC 2021) held that Part 4 of the 2008 standard Massachusetts policy covers a third party's inherent diminished value (IDV), proved with individualized evidence. Cubberley v. Commerce Ins. Co. (SJC Jan. 30, 2025) held that Part 4 of the 2016 standard policy validly excludes 'any decreased value or intangible loss', so the at-fault driver's insurer need not pay IDV; the court noted the at-fault driver may still be personally liable in tort, and a third-party claimant must obtain a final judgment against the insured before suing the insurer. Given v. Commerce Ins. Co. (SJC 2003): collision coverage does not pay the insured's own IDV.

Source: Cubberley v. Commerce Ins. Co., SJC-13563 (Mass. Jan. 30, 2025); McGilloway v. Safety Ins. Co., 488 Mass. 610 (2021); Given v. Commerce Ins. Co., 440 Mass. 207 (2003)

See which states allow diminished value claims.

Does your own insurance pay diminished value in Massachusetts?

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

How to file a diminished value claim in Massachusetts

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 Massachusetts?

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 Massachusetts

Short answer: You generally have 3 years to sue the at-fault driver for damage to your car (G.L. c. 260, § 2A). Send your written demand well before then.

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

Source: G.L. c. 260, § 2A (tort actions)

How to file an insurance complaint in Massachusetts

Short answer: File a free complaint with the Massachusetts 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.