How to File a Diminished Value Claim in Florida
Filing a diminished value claim in Florida can help you reclaim your losses after an auto accident—but it’s not always a straightforward process.
Written by Kara Vanderbeek
Reviewed by Kathleen Flear
Whether your vehicle suffers a minor fender bender or a total loss, your car will lose value after any accident. Luckily, you can file a diminished value claim with the at-fault driver’s
car insurance
company to help you recoup your losses.Florida is a diminished value state, meaning that drivers can file diminished value claims after an accident to reclaim their vehicle’s loss in value. Here’s how they work in the Sunshine State and how to file one yourself.
What is a diminished value claim?
If you’re involved in a car accident in Florida and found not at fault, you can file a claim with the at-fault driver’s insurance company to cover any medical bills or property damage. Florida law requires all drivers to carry at least $10,000 in
personal injury protection
and at least $10,000 in property damage liability
per accident. But even if the repairs were minor and your vehicle was fixed by a competent mechanic, your car will be worth less after any accident. This is known as diminished value—the difference between the resale value of your car before the accident versus the remaining value after the accident.
Diminished value is based on the principle that a consumer will refuse to pay full value for a vehicle with an accident in its history. Luckily, Florida is one of the 15 states in which drivers are entitled to compensation for this loss in value.
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There are three different types of diminished value in Florida:
- Repair-related diminished value: Applies when the diminished value of your vehicle is due to improper or low-quality repairs
- Immediate diminished value: Applies when damages immediately decrease the value of the vehicle, whether they have been repaired or not
- Inherent diminished value: Applies when you’ve made repairs to the vehicle but still have a loss of value
Inherent diminished value is the most common type and refers to the idea that an accident report on a vehicle’s history decreases its value. For the purposes of this guide, this is the type of diminished value we’ll be referring to unless otherwise specified.
What is the difference between diminished value and depreciation?
While all cars depreciate, not all vehicles suffer from diminished value. Both represent a loss in value, so what’s the difference?
Depreciation refers to a vehicle’s inevitable loss in value over time after continued use, while diminished value refers to the immediate drop in a vehicle’s value due to an accident. Think of it this way: If you’re in the market for a used car, you’ll be more inclined to purchase a 2012 Chevrolet Camaro with 80,000 miles and no accidents than a 2012 Camaro with 80,000 miles with a history of accidents.
MORE: Diminishing deductibles
What is the difference between a diminished value claim and a diminished value appraisal?
Before filing a diminished value claim with an insurance company, you’ll need to have your vehicle professionally appraised to determine the diminished value. In other words, the appraisal is the proof, with a specific dollar amount, that your car has lost value.
You can estimate that loss in value using Kelley Blue Book’s market value calculations, but you should still have your vehicle professionally appraised to ensure accuracy.
How to file a Florida diminished value claim
Filing a diminished value claim in Florida isn’t much different from filing any other type of insurance claim—but it’s important to ensure you meet all the eligibility requirements before you make the claim.
In Florida, compensation from a diminished value claim depends on the following factors:
- Fault: You can only file a DV claim if you were not at fault for the accident
- Time limits: Florida drivers have a time limit of four years from the accident to file a claim
- Appraisals: You must provide an accurate appraisal of the car’s value before and after the accident
- Evidence: You must prove the loss in your vehicle’s value with as much professional documentation as possible
If you meet all requirements, you can file a diminished value claim with the insurance provider. If your claim is denied, you’re not out of options. You can file a lawsuit in small claims court with a personal injury attorney, but it’s up to you if it's worth the time and effort. The average diminished value payout is between $500 and $2,000.
The 17c formula: free diminished value calculator
If you’re trying to estimate the diminished value of your vehicle post-accident, follow what the experts do and use the 17c formula. While the calculations won’t always provide exact accuracy, it can be a helpful tool in determining whether it’s worth it to pursue a claim.
The first value you’ll need for the formula is the pre-accident value of the vehicle based on its make, model, age, mileage, and condition. Kelley Blue Book is a helpful resource if you're unsure about its value. Once you have your value, multiply it by .10 (or 10%) to find the base loss value.
Now that you have the base loss value, you can apply two different multipliers based on your car’s damage and mileage to find the diminished value.
For damage, use the following multipliers:
- 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
Take the resulting number and multiply it by one of the following mileage numbers:
- 1 if your mileage is between 0 and 19,999
- 0.80 if your mileage is between 20,000 and 39,999
- 0.60 if your mileage is between 40,000 and 59,999
- 0.40 if your mileage is between 60,000 and 79,999
- 0.20 if your mileage is between 80,000 and 99,999
- 0 if your mileage is above 100,000
What is the statute of limitations for a diminished value claim in Florida?
In the state of Florida, drivers have four years from the date of the accident to file a diminished value claim. Any diminished value claims submitted outside the four-year time limit will not be considered.
The bottom line
Florida allows diminished value claims—but there’s no guarantee that your claim will be successful. Drivers with the best chances of a successful claim are those with rare or high-end vehicles with evidence of a professional appraisal.
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