Last updated: August 18, 2025

Diminished Value & Total Loss Auto Appraisals in Arizona: What You Need to Know

Arizona drivers can recover losses for both diminished value (DV) and fair market value (FMV) claims after a car accident. Whether your vehicle was repaired or declared a total loss, state law allows you to pursue compensation for its true pre-accident value. This page explains how Arizona diminished value appraisals and total loss auto appraisals work, what laws apply, key filing steps, and how a professional SnapClaim report can help you negotiate a fair insurance settlement. For city-specific information, visit our Arizona Diminished Value Appraisal page.

Does Arizona Allow Diminished Value and Total Loss Claims?

Diminished Value (DV)

Yes. Arizona recognizes inherent diminished value as a valid claim. In Johnson v. State Farm Mut. Auto. Ins. Co. (Ariz. Ct. App. 1991), the court confirmed that vehicle owners are entitled to recover post-repair loss in value. If you were not at fault and your car was repaired, you can claim the difference between its pre-accident and post-repair market value from the at-fault driver’s insurer.

Fair Market Value / Total Loss (FMV)

Yes. When repair costs exceed the vehicle’s actual cash value, Arizona insurers must settle for its fair market value prior to the accident. If you believe the insurance offer undervalues your car, you have the right to request an independent Fair Market Value Appraisal prepared with verified Arizona market data and dealer quotes.

Key Arizona Laws & Regulations

• DV recognition:Johnson v. State Farm (1991) — insurers must pay for inherent diminished value when proven.
• FMV requirement: Arizona Administrative Code R20-6-801 — insurers must determine fair market value using comparable vehicles.
• Statute of limitations: A.R.S. § 12-542 — 2 years for property damage, including DV and FMV claims.
• Comparative negligence: A.R.S. § 12-2505 — recovery is reduced in proportion to fault but not barred.
• Small claims: Arizona Justice Courts handle claims up to $3,500 (Arizona Courts).
• Insurance complaints: File with the Arizona Department of Insurance and Financial Institutions.

What You Should Document

• Accident or police report: Obtain from the Arizona DPS Records Request Portal.
• Repair invoices and supplements: Include photos, calibration data, and parts details.
• Vehicle photos: Before and after repairs, showing VIN and odometer.
• Comparable sales data: Arizona dealership and private listings from your area.
• Certified Diminished Value or FMV Appraisal from SnapClaim.

Step-by-Step Claim Process

1. Confirm your claim type: Diminished Value (DV) for repaired vehicles or Fair Market Value (FMV) for total loss.
2. Gather documentation: Collect your accident report, repair invoices, and vehicle photos.
3. Order a professional appraisal:SnapClaim reports use verified Arizona comparables and USPAP-compliant methods.
4. Submit a demand letter: Include your appraisal and cite Johnson v. State Farm to justify compensation.
5. Negotiate or escalate: If the insurer undervalues your claim, use your report to pursue arbitration or file in small claims court.

Why a Professional Arizona Auto Appraisal Matters

Insurers frequently rely on outdated valuation formulas or limited databases. A SnapClaim Diminished Value Appraisal or Fair Market Value Appraisal uses verified Arizona market data, regional comps, and certified methodologies accepted by courts and insurers. Every report is insurer-ready, court-defensible, and backed by our Money-Back Guarantee.

Ready to Claim Your Vehicle’s True Value?

Start with a free estimate — no credit card required. SnapClaim is Arizona’s trusted auto appraisal company for diminished value and total loss claims — combining certified appraisers, real-time market data, and AI-driven valuation tools to help you secure the settlement you deserve. Get My Free Estimate →

Learn More About Arizona Diminished Value Claims

For more details on eligibility, local laws, and sample reports, visit our Arizona Diminished Value page to explore regional guides and city-specific resources. For other states, visit Diminished Value State Laws.