Diminished value claims in Washington

Can you claim diminished value in Washington?

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

First-party: the Washington Supreme Court held that a policy promising to repair or replace 'with other of like kind and quality' covers diminished value remaining after repair (Moeller v. Farmers). OIC notes that some auto policies don't cover diminished value, so check your policy wording. Third-party: OIC says you typically file a DV claim against the at-fault party's insurer, and payment requires proof that market value fell even after repair. Washington's pattern jury instruction states the general measure as the lesser of reasonable repair cost or the before/after (unrepaired) value difference.

Source: Moeller v. Farmers Ins. Co. of Wash., 173 Wn.2d 264, 267 P.3d 998 (2011); 6 Wash. Prac., WPI 30.11

See which states allow diminished value claims.

Does your own insurance pay diminished value in Washington?

Short answer: It may, depending on your policy's 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 Washington rule above is the starting point; your policy wording can narrow it.

How to file a diminished value claim in Washington

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 Washington?

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 Washington

Short answer: You generally have 3 years to sue the at-fault driver for damage to your car (RCW 4.16.080(2)). Send your written demand well before then.

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

Source: RCW 4.16.080(2)

How to file an insurance complaint in Washington

Short answer: File a free complaint with the Washington State Office of the Insurance Commissioner 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.