Diminished Value Appraisal in
Kentucky

Last updated: August 18, 2025

In Kentucky, your car may lose resale value after an accident even if it’s repaired properly. That loss in market value is called diminished value (DV). Kentucky law permits recovery of DV in third-party liability claims against an at-fault driver’s insurer. This guide explains when DV applies in Kentucky, the governing law, required documentation, step-by-step filing instructions, and why a professional SnapClaim appraisal is critical for maximizing recovery.

Does Kentucky Allow Diminished Value Claims?

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

Yes. Kentucky follows the general damages rule that a property owner may recover the difference between fair market value before and after an accident, even after repairs. Courts have recognized that if repairs cannot restore a vehicle’s pre-loss value, DV is compensable.

First-party (your own insurer)

Generally excluded. Most Kentucky auto policies limit payment to the cost of repair or actual cash value (ACV). Unless your policy expressly includes diminished value coverage, first-party DV recovery is not available.

Key Kentucky Law & Authority

• Measure of damages: Difference between pre-accident and post-repair fair market value. See Ellis v. King, 427 S.W.2d 247 (Ky. 1968) (recognizing DV damages).
• Statute of limitations: Ky. Rev. Stat. § 413.125 — 2 years for damage to personal property.
• Comparative fault: Pure comparative negligence — recovery reduced by your percentage of fault.
• No-fault system: Kentucky is a “choice no-fault” state (Kentucky DOI Auto Insurance Guide). DV claims generally arise outside of PIP/no-fault benefits and proceed against the at-fault driver.
• Small claims: Up to $2,500 in small claims court (Kentucky Court of Justice).
• Insurance complaints: File with the Kentucky Department of Insurance.

Types of Diminished Value in Kentucky

• Immediate DV: Value lost immediately after the crash, before repairs.
• Repair-related DV: Loss due to substandard or incomplete repairs.
• Inherent DV: The most common form — the stigma of accident history reduces resale value even after quality repairs.

What You Need to Document

• Police accident report: Available through the Kentucky State Police Records Branch.
• Repair invoices: Detailed parts and labor breakdowns.
• Photos: Before, during, and after repairs.
• Market data: Comparable sales, dealer trade-in quotes, history reports (Carfax, AutoCheck).
• Professional DV appraisal using Kentucky-specific comps.

Step-by-Step: Filing a Diminished Value Claim in Kentucky

1. Establish fault. DV claims are recoverable against the negligent driver’s insurer.
2. Finish repairs first. DV is calculated after the vehicle is restored.
3. Get a certified appraisal. A SnapClaim DV report provides objective, market-based evidence.
4. Submit a demand. Send your appraisal, crash report, repair invoices, and photos to the at-fault insurer. Cite Ellis v. King and Kentucky damages law.
5. Negotiate. Kentucky law does not mandate a formula; persuasive evidence is key.
6. Escalate if necessary: File a complaint with the Department of Insurance or pursue small claims court (≤ $2,500), or higher courts for larger claims.

Why a Professional Kentucky DV Appraisal Matters

Insurers in Kentucky often downplay diminished value using unfair formulas. A SnapClaim Diminished Value Appraisal delivers authoritative, Kentucky-specific market analysis that strengthens your negotiation leverage or legal claim. For total loss cases, see our Fair Market Value Appraisals. Every SnapClaim report is backed by our Money-Back Guarantee. Explore other states in our State DV Law Guide.