Diminished Value Appraisal in
Illinois

Last updated: August 18, 2025

In Illinois, your vehicle may lose market value even after high-quality repairs. That post-repair loss is called diminished value (DV). Illinois courts follow the standard rule of property damages: you may recover either the reasonable cost of repairs or the difference in fair market value before and after the accident—whichever is less. If repairs do not restore full value, both may be considered. This guide explains when Illinois diminished value is recoverable, the controlling case law, filing steps, deadlines, and how a professional SnapClaim appraisal strengthens your claim.

Does Illinois Allow Diminished Value Claims?

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

Yes. Illinois law allows recovery for diminution in market value if repair alone does not make the owner whole. Courts recognize that the proper measure is the difference in fair market value before and after the damage. See Ross v. Sullivan, 314 Ill. App. 3d 375 (2000), where the court upheld DV recovery when repairs left residual loss.

First-party (your own collision/comprehensive)

Generally excluded. Standard Illinois auto policies limit coverage to repair costs or actual cash value (ACV). There is no Illinois precedent requiring insurers to pay inherent DV under first-party policies unless explicitly stated.

Key Illinois Law & Authority

• Measure of damages: Reasonable repair cost or diminution in fair market value; both may apply if repairs do not fully restore value (Ross v. Sullivan).
• Statute of limitations: 735 ILCS 5/13-205 — 5 years for injury to personal property, including DV claims.
• Comparative fault: 735 ILCS 5/2-1116 — modified comparative negligence; recovery barred if plaintiff is more than 50% at fault.
• Small claims: Illinois small claims court handles cases up to $10,000 (see Illinois Courts – Small Claims).
• Insurance complaints: File with the Illinois Department of Insurance.

Types of Diminished Value in Illinois

• Immediate DV: Loss of value immediately after the accident, before repairs.
• Repair-related DV: Loss caused by substandard or incomplete repairs.
• Inherent (stigma) DV: The most common type—resale value drops simply because the car has an accident history, even with proper repairs.

What You Need to Document

• Crash report: Obtain through the Illinois State Police crash report portal or local law enforcement.
• Repair records: All estimates, supplements, invoices, and OEM certification documents.
• Photos: Pre-repair and post-repair damage photos, including VIN and mileage.
• Market data: Comparable Illinois sales, dealer quotes, and vehicle history reports.
• Professional DV appraisal based on Illinois market comps.

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

1. Identify claim type. Most DV claims are third-party against the at-fault driver’s insurer.
2. Complete repairs. DV is measured after restoration work.
3. Order a professional appraisal. SnapClaim’s report provides Illinois-specific comps and valuation analysis.
4. Send a demand letter. Attach your appraisal, crash report, repair records, and photos. Cite Ross v. Sullivan as authority for DV recovery.
5. Negotiate with evidence. Illinois does not use a fixed formula; insurers must consider credible appraisals.
6. Escalate if needed: File a complaint with the Illinois Department of Insurance, pursue small claims court (≤ $10,000), or file a higher-value action in Circuit Court.

Why a Professional Illinois DV Appraisal Helps

Insurers often undervalue diminished value using blanket formulas. A SnapClaim Diminished Value Report uses Illinois-market comps, transparent adjustments, and expert analysis—persuasive in negotiations, regulator complaints, and court filings. If your car was declared a total loss, request a Fair Market Value Appraisal. All reports are backed by our Money-Back Guarantee. Compare rules nationwide in our Diminished Value State Laws Guide.