Diminished value claims in Montana

Can you claim diminished value in Montana?

Short answer: Montana courts have not clearly decided whether you can recover it from the at-fault driver's insurer.

Montana has no controlling decision on residual diminished value (RDV). In Hop v. Safeco Ins. Co. of Illinois, 2011 MT 215, 361 Mont. 510, 261 P.3d 981, a third-party claimant whose 33-day-old Corvette was hit sought RDV through a class action. The Montana Supreme Court reversed class certification, stating that it 'has not yet addressed the question of whether insurers in Montana have an obligation to pay RDV claims at all', and held the UTPA claim not ripe because MCA 33-18-242 requires the underlying claim to be resolved first. An older first-party case, Eby v. Foremost Ins. Co., 141 Mont. 62, 374 P.2d 857 (1962) (a trailer), quoted with approval the view that under a 'cost of replacement' limit there is no complete restoration unless no diminution in value remains after repair. That result depends on the policy wording, and modern policies may exclude diminished value.

Source: Hop v. Safeco Ins. Co. of Illinois, 2011 MT 215, 361 Mont. 510, 261 P.3d 981; Eby v. Foremost Ins. Co., 141 Mont. 62, 374 P.2d 857 (1962)

See which states allow diminished value claims.

Does your own insurance pay diminished value in Montana?

Short answer: There is no clear Montana rule either way, so check your policy wording.

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

What to do when Montana law is unclear

Unclear does not mean no. It means we found no Montana court decision that settles the question. You can still ask the at-fault driver's insurer in writing, with evidence of the lost value, and ask for its reasons in writing if it refuses.

• Keep the deadline below in view. Talking with the insurer does not usually stop it from running.
• Base your number on market evidence, not on a formula the insurer picks.
• If the insurer will not engage, a local attorney can tell you whether Montana courts are likely to allow the claim. Many offer a free first call.

How to file a diminished value claim in Montana

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 Montana?

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 Montana

Short answer: You generally have 2 years to sue the at-fault driver for damage to your car (MCA 27-2-207(1)-(2)). Send your written demand well before then.

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

Source: MCA 27-2-207(1)-(2) (injury to personal property; taking, detaining or injuring goods or chattels)

How to file an insurance complaint in Montana

Short answer: File a free complaint with the Montana Commissioner of Securities 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.