Diminished Value Appraisal in
Indiana

Last updated: August 18, 2025

After an accident in Indiana, your vehicle may lose resale value even after professional repairs. That post-repair loss is called diminished value (DV). Under Indiana law, you may pursue DV in a third-party liability claim against the at-fault driver’s insurer. This guide explains when diminished value is recoverable in Indiana, the controlling statutes and case law, what to document, how to file step by step, and why a professional SnapClaim appraisal gives you the strongest negotiating position.

Does Indiana Allow Diminished Value Claims?

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

Yes. Indiana follows the general rule of damages for personal property: the measure is the difference in fair market value immediately before and after the accident. If repairs do not restore full market value, DV may be recovered. See Allgood v. Mercer, 836 N.E.2d 470 (Ind. Ct. App. 2005), confirming DV as a compensable element when proven with credible evidence.

First-party (your own collision/comprehensive)

Generally excluded. Standard Indiana auto policies pay for repairs or actual cash value (ACV), but not inherent diminished value. Unless your contract explicitly provides DV coverage, first-party DV is not recoverable.

Key Indiana Law & Authority

• Measure of damages: Reasonable repair costs plus any remaining diminution in value (Allgood v. Mercer).
• Statute of limitations: Indiana Code 34-11-2-4 — 2 years for injury to personal property.
• Comparative fault: Indiana Comparative Fault Act (IC 34-51-2) — modified comparative negligence; recovery barred if you are 51% or more at fault.
• Small claims: Indiana small claims courts handle cases up to $10,000 (see Indiana Courts – Small Claims).
• Insurance complaints: File with the Indiana Department of Insurance Consumer Services.

Types of Diminished Value in Indiana

• Immediate DV: Value loss right after the collision, before repairs.
• Repair-related DV: Additional loss if repairs are incomplete or of poor quality.
• Inherent (stigma) DV: The most common type—resale value drops even after high-quality repairs due to accident history.

What You Need to Document

• Accident report: Available through the Indiana State Police crash report portal or local law enforcement.
• Repair invoices: Detailed estimates, invoices, and any supplemental orders.
• Photos: Pre-repair, damage, and post-repair photos.
• Market evidence: Comparable Indiana vehicle sales, dealer trade-in offers, and Carfax history reports.
• Professional DV appraisal tailored to Indiana’s used-car market.

Step-by-Step: Filing an Indiana Diminished Value Claim

1. Determine fault. DV is recoverable only from the at-fault party’s insurer.
2. Repair your vehicle. DV is calculated after repairs are completed.
3. Get a professional appraisal. SnapClaim’s report documents your vehicle’s pre-loss and post-repair values.
4. Draft a demand letter. Attach appraisal, repair invoices, accident report, and photos. Cite Allgood v. Mercer to support DV recovery.
5. Negotiate with the insurer. Indiana does not use a fixed formula; insurers must review credible valuation evidence.
6. Escalate if necessary: File a complaint with the Indiana Department of Insurance, or pursue small claims court (≤ $10,000) or higher court for larger losses.

Why a Professional Indiana DV Appraisal Helps

Insurers often minimize diminished value using quick formulas. A SnapClaim Diminished Value Appraisal provides Indiana-specific comps, transparent adjustments, and expert methodology. This evidence strengthens your negotiation and stands up in court. If your car is a total loss, consider our Fair Market Value Appraisal. All SnapClaim reports are backed by our Money-Back Guarantee. Explore other states in our State Diminished Value Guide.