Diminished Value Appraisal in
Hawaii

Last updated: August 18, 2025

In Hawaii, your vehicle may lose market value even after quality repairs. That loss is called diminished value (DV). Hawaii’s courts apply the general tort rule for property damage: the measure of damages is either the reasonable cost of repair or the difference in fair market value before and after an accident. If repairs do not restore full value, both repair costs and residual diminished value may be recoverable. This guide explains when Hawaii diminished value is recognized, the key legal standards, what to document, filing deadlines, and how a professional SnapClaim appraisal strengthens your claim.

Does Hawaii Allow Diminished Value Claims?

Third-party (at-fault driver’s insurer)

Yes. Hawaii follows the traditional rule: property damage may be measured by repair costs or the difference in fair market value pre- and post-accident. When proper repairs leave residual loss, courts allow recovery of that diminished value. See HRS § 663-8 (measure of damages for injury to property).

First-party (your own collision/comprehensive)

Generally excluded. Standard auto policies in Hawaii limit the insurer’s obligation to repair the vehicle or pay actual cash value. No reported Hawaii appellate decision compels first-party insurers to pay inherent DV unless expressly included in the policy.

No-Fault (PIP) context

Hawaii is a no-fault state for personal injury protection (PIP), but property damage, including DV, is handled under tort law. You may bring a claim against an at-fault driver’s liability coverage for DV losses.

Key Hawaii Law & Authority

• Measure of damages: Cost of repair or diminution in market value; both may apply if repairs do not restore pre-loss value (HRS § 663-8).
• Statute of limitations: HRS § 657-7 — 2 years for damage to personal property.
• Comparative negligence: HRS § 663-31 — modified comparative negligence; recovery barred if plaintiff is 51% or more at fault.
• Small claims: Hawaii District Court small claims jurisdiction is generally up to $5,000 (see Hawaii Judiciary – Small Claims).
• Insurance complaints: File with the Hawaii Insurance Division.

Types of Diminished Value in Hawaii

• Immediate DV: Loss in value right after the accident, before repairs.
• Repair-related DV: Loss caused by substandard repairs or non-OEM parts.
• Inherent (stigma) DV: Residual loss in resale value even after proper repairs — the most common type of Hawaii diminished value claim.

What You Need to Document

• Crash report: Hawaii requires reports for injury, death, or property damage ≥ $3,000. Request via the Hawaii DOT crash report portal or the investigating police department.
• Repair records: Estimates, supplements, invoices, and calibration/frame documentation.
• Photos: Pre- and post-repair photos, with VIN and odometer shown.
• Market data: Vehicle history report and comparable Hawaii sales/auctions.
• Professional DV appraisal with Hawaii-market comps.

Step-by-Step: Filing a Hawaii Diminished Value Claim

1. Confirm the claim path. Third-party DV is the usual route; first-party DV is rarely covered unless your policy says so.
2. Complete repairs. DV is measured post-repair.
3. Order a professional DV appraisal. SnapClaim’s report provides Hawaii comps and expert methodology.
4. Send a written demand. Include appraisal, crash report, repair docs, and photos. Cite HRS § 663-8 (measure of damages).
5. Negotiate with evidence. Hawaii has no fixed DV formula; fair market evidence is controlling.
6. Escalate if needed: File a regulator complaint with the Hawaii Insurance Division, pursue small claims court (≤ $5,000), or sue in District/Circuit Court for higher amounts.

Why a Professional Hawaii DV Appraisal Helps

Insurers often undervalue DV with arbitrary formulas. A SnapClaim Diminished Value Report uses Hawaii-market comps, transparent adjustments, and expert methodology — persuasive in negotiation, regulator complaints, or small claims. If your vehicle was totaled, request a Fair Market Value Appraisal. You’re protected by our Money-Back Guarantee. Compare state rules at Diminished Value State Laws.