Diminished value claims in New York

Can you claim diminished value in New York?

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

Third-party: New York courts generally measure vehicle damage by the before/after difference in market value, or by reasonable repair cost if that is less (Miller v. Sanchez, 6 Misc. 3d 479, 789 N.Y.S.2d 850 (N.Y. City Civ. Ct. 2004)). Diminished value on top of repairs has been allowed mainly for new, collector or appreciating vehicles: Rosenfield v. Choberka, 140 Misc. 2d 9, 529 N.Y.S.2d 455 (Sup. Ct. 1988) (new car damaged a few weeks after purchase); Franklin Corp. v. Prahler, 91 A.D.3d 49, 932 N.Y.S.2d 610 (4th Dep't 2011) (rare, appreciating 2000 Ford GT; plaintiff may seek repair cost plus diminution). Parkoff v. Stavsky (App. Div. 2013) (Mercedes with 398 miles) is reported by a law-firm survey (Matthiesen, Wickert & Lehrer); we have not reviewed the opinion. First-party: no modern controlling decision found. Edwards v. Maryland Motor Car Ins. Co., 204 App. Div. 174, 197 N.Y.S. 460 (1922) held diminution in value of a nearly new stolen and recovered car was covered under that policy's theft 'direct loss or damage' clause.

Source: Miller v. Sanchez, 6 Misc. 3d 479 (Civ. Ct. 2004); Franklin Corp. v. Prahler, 91 A.D.3d 49, 932 N.Y.S.2d 610 (4th Dep't 2011); Rosenfield v. Choberka, 140 Misc. 2d 9, 529 N.Y.S.2d 455 (Sup. Ct. 1988); Edwards v. Maryland Motor Car Ins. Co., 204 App. Div. 174, 197 N.Y.S. 460 (1922)

See which states allow diminished value claims.

Does your own insurance pay diminished value in New York?

Short answer: There is no clear New York 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 New York rule above is the starting point; your policy wording can narrow it.

How to file a diminished value claim in New York

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 York?

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 York

Short answer: You generally have 3 years to sue the at-fault driver for damage to your car (N.Y. CPLR 214(4)). Send your written demand well before then.

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

Source: N.Y. CPLR 214(4) (action to recover damages for an injury to property)

How to file an insurance complaint in New York

Short answer: File a free complaint with the New York State Department of Financial Services 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.