Last updated: August 13, 2025

If your vehicle was damaged in an Indiana crash and later repaired, it may still be worth less than before. That lost market value is called diminished value (DV). This guide explains when DV is recoverable in Indiana, what evidence you need, the exact steps to file (with deadlines), and why a professional appraisal from SnapClaim helps you settle faster and for the right amount.

Does Indiana Allow Diminished Value Claims?

Third-party DV (against the at-fault driver’s insurer): Yes. Indiana tort law allows recovery of diminution in fair market value as part of property damage—the difference between the vehicle’s fair market value just before the crash and after repair. Indiana appellate decisions (e.g., Wiese-GMC, Inc. v. Wells and Shield Global Partners-G1, LLC v. Forster) confirm that a plaintiff may recover the post-repair loss in value when repairs do not restore pre-loss fair market value.

First-party DV (under your own policy): Generally not covered under collision/comprehensive unless your policy expressly provides it. The Indiana Supreme Court in Allgood v. Meridian Security Ins. Co. held that standard collision coverage does not include inherent DV when the policy limits the insurer’s obligation to the lesser of repair or actual cash value.

UM/UIM exception: Indiana’s Supreme Court held in Dunn v. Meridian Mutual Ins. Co. that uninsured/underinsured motorist property damage coverage must pay DV because UM/UIM stands in the shoes of the tortfeasor; i.e., the insured may recover the tort measure of damages, including post-repair diminution in value, up to policy limits.

New to DV? Start here: Diminished Value Overview.

Key Indiana Law & Authority

• Measure of damages (personal property): Wiese-GMC, Inc. v. Wells, 626 N.E.2d 595 (Ind. Ct. App. 1993) — fundamental measure where property is damaged (but not destroyed) is the reduction in fair market value; proof may be (1) before/after FMV, (2) cost of repair if it restores FMV, or (3) both.
• Inherent DV after repairs: Shield Global Partners-G1, LLC v. Forster (Ind. Ct. App. 2020) — confirms recovery of inherent (residual) DV when evidence shows the vehicle’s FMV remains less after proper repairs.
• First-party collision DV: Allgood v. Meridian Security Ins. Co., 836 N.E.2d 243 (Ind. 2005) — no payment for inherent DV under standard collision “repair or ACV” limit-of-liability language.
• UM/UIM DV: Dunn v. Meridian Mutual Ins. Co., 836 N.E.2d 249 (Ind. 2005) — UMPD/UIM property damage must pay DV because it covers what the tortfeasor would owe.
• Statute of limitations (property damage): Ind. Code § 34-11-2-4 — generally 2 years from accrual for injury to personal property (includes DV claims).
• Consumer escalation: Indiana Department of Insurance (IDOI) complaint portal and helpline: File a Complaint.

Types of Diminished Value Recognized

• Immediate DV: Value drop immediately after the crash and before repairs (rarely pursued by consumers).
• Repair-related DV: Loss caused by sub-optimal repairs (non-OEM parts, structural/frame variance, paint mismatch, refinish issues).
• Inherent (residual) DV: Market stigma that remains after quality repairs because the vehicle now has an accident history—the most common DV claim in Indiana.

What You Need to Document

• Crash report: Obtain from the Indiana State Police portal which directs to BuyCrash: Indiana State Police — Crash Reports.
• Photos: Pre-loss (if available), post-crash damage, and post-repair photos of all affected panels.
• Repair records: Initial and supplemental estimates, final invoice, parts list (OEM vs aftermarket), frame/unibody measurements, paint materials sheets.
• Vehicle & market data: VIN, trim/options, mileage (pre/post), service history, ownership/title status, and comparable sales/listings in your Indiana market.
• Professional appraisal: An independent DV report quantifying inherent and repair-related DV using transparent methodology and local comps — order a SnapClaim DV appraisal.

If your vehicle is a total loss, obtain a Fair Market Value (Total Loss) Appraisal instead.

How to Obtain Indiana Crash Reports

The Indiana State Police maintains the central repository and provides electronic purchase access via the BuyCrash system. Start here: ISP Crash Reports.

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

1. Confirm the claim path: first-party vs. third-party.
   • Third-party: Claim against the at-fault driver’s liability policy for the post-repair reduction in fair market value (DV).
   • First-party (collision): Usually excludes inherent DV unless your policy clearly includes it (Allgood).
   • UM/UIM property damage: May include DV because it mirrors tort damages (Dunn), subject to policy limits.
2. Assemble evidence. Crash report, damage & post-repair photos, complete repair documentation, and market comps showing stigma.
3. Order a professional DV appraisal. Use SnapClaim to obtain a fast, defensible valuation grounded in Indiana market data and aligned with Wiese/Shield principles.
4. Send a formal demand. Attach your appraisal and exhibits (photos, estimates/invoices, comparable listings/auction data). State the DV amount and valuation theory (difference between pre-loss and post-repair FMV; include any repair-related DV).
5. Negotiate with data. Be prepared to address mileage/condition adjustments, repair quality, and comparable selection. Counter any formulaic reductions with market-verified comps and the appraisal’s transparent methodology.
6. Escalate if needed.
   • Regulator complaint: File with the IDOI if claim handling appears unfair: Complaint Portal.
   • Small Claims (Magistrate Division): For disputes up to $10,000. See Indiana courts’ Small Claims materials and your county clerk’s instructions.
   • Superior/Circuit Court: For claims exceeding $10,000 or where formal litigation is appropriate. Consider consulting an Indiana attorney experienced in auto property damage/DV.
7. Preserve deadlines. Indiana’s limitations period for injury to personal property (including DV) is generally 2 years from accrual (Ind. Code § 34-11-2-4). Contract claims may have policy notice/proof-of-loss requirements—review your policy.

Indiana-Specific Tips to Strengthen Your Claim

• Use Indiana comps. Include local dealer/private-party listings and recent auction data reflecting how Indiana buyers discount for accident history.
• Document repair quality. Frame specs and paint-meter readings (if available) help establish or rule out repair-related DV.
• State the theory precisely. Identify whether your claim is for inherent DV, repair-related DV, or both—and tie each to exhibits.
• Keep an exhibit stack. Label attachments (A, B, C…) and keep communications organized; it speeds regulator review or court filing.

Why Using a Professional Appraisal Is Crucial

Insurers often rely on rough formulas that understate real-world market impact. A SnapClaim appraisal applies Indiana-market comparables, transparent adjustments, and expert review—built to stand up in negotiation, Small Claims, or Superior/Circuit Court. If your vehicle is totaled, switch to our Fair Market Value (Total Loss) Appraisal. You’re also protected by our Money-Back Guarantee Policy.

• Order a Diminished Value Report
• Diminished Value Overview
• Fair Market Value (Total Loss) Appraisal
• Money-Back Guarantee Policy
• Diminished Value State Laws

References & Resources

• Measure of Damages (Personal Property): Wiese-GMC, Inc. v. Wells (Ind. Ct. App. 1993); Application in small claims context: Dado v. Jeeninga (Ind. Ct. App. 2001)
• Inherent DV after Repairs: Shield Global Partners-G1, LLC v. Forster (Ind. Ct. App. 2020)
• First-Party Collision DV: Allgood v. Meridian Security Ins. Co. (Ind. 2005)
• UM/UIM DV: Dunn v. Meridian Mutual Ins. Co. (Ind. 2005)
• Statute of Limitations — Property Damage: Ind. Code § 34-11-2-4 (2-year limit)
• Crash Reports: Indiana State Police — Crash Reports (BuyCrash)
• Consumer Complaints: Indiana Department of Insurance — File a Complaint
• Small Claims Jurisdiction: Indiana Courts Small Claims materials (limit $10,000) — Small Claims Manual (Updated 12/31/2024)
• Background survey of DV law: MWL 50-State DV Survey (2022 update)
• SnapClaim internal resources for Indiana claimants:
  • Order a Diminished Value Report
  • Diminished Value Overview
  • Fair Market Value (Total Loss) Appraisal
  • Money-Back Guarantee Policy
  • Diminished Value State Laws