Last updated: August 13, 2025

If your vehicle was damaged in a Delaware crash and later repaired, it may be worth less than it was before the collision. That lost market value is called diminished value (DV). This guide explains when DV is recoverable in Delaware, what evidence you need, and the exact steps to file a strong claim that insurers and attorneys take seriously. If you need a fast, certified DV appraisal, SnapClaim can help you start today.

Does Delaware Allow Diminished Value Claims?

Third-party DV (against the at-fault driver/insurer): Yes. Delaware tort law allows recovery of diminution in value as a measure of property damage—i.e., the difference between a vehicle’s fair market value immediately before and after a crash (even after quality repairs). While there is no Delaware Supreme Court case devoted solely to auto DV, Delaware courts recognize diminution in value as a valid damages measure in property cases, and DV is commonly pursued in auto claims and in DOI automobile arbitrations. See the Delaware Insurance Department’s auto arbitration framework (Regulation 901) and Title 21 §2118, which together govern automobile claim arbitration in Delaware.

First-party DV (under your own policy): Usually not covered unless your policy expressly provides it. Delaware’s uninsured motorist property damage statute defines “property damage” to include loss of use, but coverage for DV itself depends on the contract language. Most collision/UMPD policies exclude DV. Always check your policy declarations and exclusions.

Learn more about DV basics here: Diminished Value Overview.

Key Delaware Law & Authority

• Measure of property damages: Delaware courts recognize diminution in value as a valid measure of property damage (general principle applied by Delaware Superior Court).
• Auto insurance arbitration: 18 DE Admin. Code 901 (Arbitration of Automobile & Homeowners’ Insurance Claims) implements 21 Del. C. §2118 and provides a forum for many first- and third-party auto property claims (with listed exclusions and exemptions).
• UM/UMPD statute (first-party): 18 Del. C. §3902
• Statute of limitations (property damage): 10 Del. C. §8107 — generally 2 years.

For more state-specific details, visit Diminished Value State Laws.

Types of Diminished Value Recognized

• Immediate DV: Loss in value right after the crash, before repairs.
• Repair-related DV: Loss due to sub-optimal or non-OEM repairs, frame damage, paint mismatch, etc.
• Inherent (residual) DV: Remaining loss after quality repairs because the vehicle now has an accident history.

What You Need to Document

• Police crash report.
• Pre-loss, damage, and post-repair photos.
• Full repair estimates, invoices, and parts documentation.
• VIN, trim, mileage, and ownership records.
• Independent appraisal — order a DV report from SnapClaim to get a certified, court-ready valuation.

If your vehicle is totaled instead, you may need a Fair Market Value (Total Loss) Appraisal.

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

1. Confirm fault and coverage.
2. Gather documentation (police report, photos, repair records).
3. Get a professional DV appraisal from SnapClaim.
4. Send a written demand with your appraisal to the insurer.
5. Negotiate and provide supporting market data.
6. Use Delaware DOI Auto Arbitration if needed.
7. File in court before the 2-year statute runs out.

Why Using a Professional Appraisal Is Crucial

Insurers often challenge DV claims. A SnapClaim appraisal uses market-verified comparables, transparent adjustments, and expert review — helping you settle faster and for the right amount. Our Money-Back Guarantee Policy means you can claim with confidence.

References & Resources

• Diminished Value Overview
• Order a Diminished Value Report
• Fair Market Value (Total Loss) Appraisal
• Money-Back Guarantee Policy
• Diminished Value State Laws
• Delaware DOI – Auto Arbitration
• 18 DE Admin. Code 901
• 10 Del. C. §8107
• 21 Del. C. §2118
• 18 Del. C. §3902