Whether it's a fender bender or a more serious collision, your vehicle loses value after an accident. If you were not at-fault for an accident in Arizona, you can file a claim with the at-fault party’s car insurance company to reclaim diminished value.

Arizona is a diminished value state, meaning you can file a diminished value claim if you were involved in an accident where the other driver is at fault. If granted, you will receive a payment thas is the difference between how much your vehicle was worth prior to the accident versus how much it is worth after the repair.. Here’s everything you need to know about diminished value claims in the Grand Canyon State, including how to file one.

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What is a diminished value claim?

If you were at fault for an accident or if the accident did not occur due to a collision, you cannot file a diminished value claim in Arizona. Alternatively, if you were not at fault, you can file a claim with the at-fault driver’s insurance company for remedial compensation.

In Arizona, drivers are required to carry at least $20,000 per person and $50,000 per accident of

bodily injury liability coverage

and $15,000 per accident of

property damage liability

coverage. The at-fault driver’s property damage liability coverage should cover your repairs, but your car will still be worth less than before the accident.

Diminished value represents the difference between the resale value of your vehicle before and after the accident, and Arizona law permits drivers to file claims for diminished value post-accident.

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Diminished value claims, explained

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The three types of diminished value

There are three types of diminished value in Arizona:

Immediate diminished value: The vehicle’s lower market value after the accident and before repairs

Inherent diminished value: The vehicle’s lower market value after repairs

Repair-related diminished value: Faulty repairs resulting in diminished value

Inherent diminished value is usually the most referenced type of diminished value in Arizona, so this guide will primarily focus on dealing with claiming your vehicle’s market value after repairs.

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What is the difference between diminished value and depreciation?

No matter what you drive, your car is bound to depreciate over time. Depreciation is inevitable, whereas your vehicle isn’t guaranteed to get into an accident.

Car accidents and repairs alter the manufacturer’s original mechanical setup, which results in diminished value—an abrupt drop in your vehicle’s resale value due to an accident. Alternatively, depreciation refers to the vehicle’s loss of value as a result of age.

For example, if you’re interested in purchasing a used car, you may be more likely to buy a 2013

Hyundai Elantra

with 100,000 miles and no accidents than a 2010 Hyundai Elantra with 100,000 miles and two accidents. These are the same vehicles with identical mileage, but the second vehicle is technically worth less due to its accident history, even after repairs.

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What is the difference between a diminished value claim and a diminished value appraisal?

You need to get a diminished value appraisal to file a diminished value claim with an insurance company. A diminished value appraisal proves that your vehicle has lost value after an accident, including a dollar amount that fairly represents the loss.

If you’re looking for an estimate, you can use Kelley Blue Book’s market value estimator or RepairPal’s appraisal calculator, but it’s best to contact a professional appraiser or diminished value expert for an accurate evaluation.

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How to file a Texas diminished value claim

Just like filing any other insurance claim, you’ll need to contact the at-fault driver’s insurance company to get things moving. But first, you’ll need to ensure that you’re vehicle is eligible for a diminished valued claim. You can file a diminished value claim in Arizona if:

You were not at fault for the accident

You own your vehicle (i.e. not financing or leasing)

You’ve had the diminished value appraised and a dollar amount is assigned

You are filing the claim within two years of the accident

If these requirements are met, you may be able to make a successful diminished value claim with the at-fault driver’s insurance company. Their insurer will make the final decision as to whether the claim is valid.

To make a diminished value claim, you must:

Prove that your vehicle lost value with professional documentation. Using the free formula below or a diminished value expert, you can find out the resale value of your vehicle after an accident. Used car dealerships can offer appraisals, and mechanics can assess your vehicle to provide repair quotes.

Submit your claim. If you have

collision coverage

, you may be able to submit a claim to your insurance provider, but you should submit a claim with the at-fault driver’s insurer first and foremost.

Be patient. You’ll likely have to wait for a verdict while the insurance adjuster assesses the situation.

Keep in mind that diminished value claims don’t have the highest success rate due to multiple factors, so your claim could be denied. If your claim doesn’t go through, you can contact an auto accident lawyer or a personal injury attorney to launch a small claims lawsuit.

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The 17c formula: free diminished value calculator

Most experts use the 17c formula to calculate a vehicle’s diminished value following a car accident. It’s not a precise formula—meaning you should definitely get an expert’s appraisal—but it can give you an estimate of the value lost, which can help you decide if you should file a claim.

You’ll need to begin with the pre-accident value of your car. Kelley Blue Book can give you an estimate based on your vehicle’s make, model, mileage, and condition. You’ll then multiply the car’s pre-accident value by .10 or 10% to find the base loss value.

With the base loss value, you’ll apply two multipliers to calculate your vehicle’s mileage and damage. You can use the following multipliers for damage:

1 if the car has structural damage

0.75 if the car has major panel or structural damage

0.5 if the car has moderate panel or structural damage

0.25 if the car has minor panel or structural damage

0 if the car has no structural damage

Once you get a number from this multiplier, you can multiply it by one of the following values for mileage:

1 for mileage between 0 and 19,999

0.80 for mileage between 20,000 and 39,999

0.60 for mileage between 40,000 and 59,999

0.40 for mileage between 60,000 and 79,999

0.20 for mileage between 80,000 and 99,999

0 for mileage between 100,000

What is the statute of limitations for a diminished value claim in Arizona?

Drivers have two years to file a diminished value claim in Arizona. After that point, your claim will be rejected if you try to file one.

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How long do you have to file a claim?

The bottom line

Arizona accepts diminished value claims, but that doesn’t mean your claim will be successful. Insurance companies are highly reluctant to approve diminished value claims, but drivers with rare luxury vehicles and professional appraisals have the best chance of recovering value from the at-fault driver’s insurer.