Diminished value claims in New Mexico

Can you claim diminished value in New Mexico?

Short answer: Yes, from the at-fault driver's insurer (UJI 13-1817 NMRA).

Third-party: New Mexico's civil jury instruction UJI 13-1817 NMRA ('Personal property; repairs plus depreciation') lets a jury award the reasonable expense of necessary repairs plus any decrease in the fair market value of the repaired property compared with its value before the occurrence. This is the basis for recovering diminished value after repair in a tort claim. Hubbard v. Albuquerque Truck Ctr., Ltd., 1998-NMCA-058, 125 N.M. 153, 958 P.2d 111, a contract case about a defective semi-tractor engine overhaul, described the majority measure as repair costs plus depreciation, or reduction in market value, whichever is less (citing the UJIs under their 1998 numbering). First-party: in a case of first impression, the Court of Appeals followed the majority trend and denied diminished market value under the policy's repair-or-replace and 'like kind and quality' terms (Davis v. Farmers Ins. Co. of Ariz., 2006-NMCA-099, 140 N.M. 249, 142 P.3d 17).

Source: UJI 13-1817 NMRA; Hubbard v. Albuquerque Truck Ctr., 1998-NMCA-058, 125 N.M. 153; Davis v. Farmers Ins. Co. of Ariz., 2006-NMCA-099, 140 N.M. 249, 142 P.3d 17

See which states allow diminished value claims.

Does your own insurance pay diminished value in New Mexico?

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

How to file a diminished value claim in New Mexico

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 New Mexico?

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 New Mexico

Short answer: You generally have 4 years to sue the at-fault driver for damage to your car (NMSA 1978 § 37-1-4). Send your written demand well before then.

Property damage claims in New Mexico generally must be filed in court within 4 years of the accident.

Source: NMSA 1978 § 37-1-4 (injuries to property; 4 years)

How to file an insurance complaint in New Mexico

Short answer: File a free complaint with the New Mexico Office of Superintendent 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.