Diminished value claims in Missouri

Can you claim diminished value in Missouri?

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

Third-party: Missouri tort law generally measures collision damage by the before/after-collision drop in market value, but also allows recovery of the cost of repairs plus the difference between pre-collision value and value after repair; recovering both repair cost and the full before/after-collision difference would be a double recovery (Rook v. John F. Oliver Trucking Co., 556 S.W.2d 200 (Mo. Ct. App. 1977), affirming a $1,500 diminished-market-value award measured after repairs). Hood v. M.F.A. Mut. Ins. Co., 379 S.W.2d 806 (Mo. Ct. App. 1964) states only the general before/after-accident measure. First-party: inherent diminished value is not covered under the standard collision policy wording at issue (Spellman v. Sentry Ins., 66 S.W.3d 74 (Mo. Ct. App. 2001); Camden v. State Farm Mut. Auto. Ins. Co., 66 S.W.3d 78 (Mo. Ct. App. 2001); Lupo v. Shelter Mut. Ins. Co., 70 S.W.3d 16 (Mo. Ct. App. 2002), holding the policy unambiguous and liability capped at ACV or cost to repair/replace). Narrow exception: if the insurer undertakes repairs and falls short of substantial restoration of function, appearance and value, the insured may recover the value difference (Williams v. Farm Bureau Mut. Ins. Co., 299 S.W.2d 587 (Mo. Ct. App. 1957)).

Source: Rook v. John F. Oliver Trucking Co., 556 S.W.2d 200 (Mo. Ct. App. 1977); Spellman v. Sentry Ins., 66 S.W.3d 74 (Mo. Ct. App. 2001); Camden v. State Farm, 66 S.W.3d 78 (Mo. Ct. App. 2001); Lupo v. Shelter Mut. Ins. Co., 70 S.W.3d 16 (Mo. Ct. App. 2002); Williams v. Farm Bureau Mut. Ins. Co., 299 S.W.2d 587 (Mo. Ct. App. 1957)

See which states allow diminished value claims.

Does your own insurance pay diminished value in Missouri?

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

How to file a diminished value claim in Missouri

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 Missouri?

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 Missouri

Short answer: You generally have 5 years to sue the at-fault driver for damage to your car (RSMo § 516.120(4)). Send your written demand well before then.

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

Source: RSMo § 516.120(4) (actions for taking, detaining or injuring goods or chattels)

How to file an insurance complaint in Missouri

Short answer: File a free complaint with the Missouri Department of Commerce and 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.