Diminished Value Appraisal in
New Mexico
Recover the lost value of your car after an accident with a certified New Mexico diminished value appraisal.
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Filing a Diminished Value Claim in New Mexico: What You Need to Know
Last updated: August 18, 2025
New Mexico allows recovery of diminished value (DV) in third-party liability claims when another driver is at fault. If your car is properly repaired but still worth less due to its accident history, the at-fault driver’s insurer may be responsible for that loss. However, first-party claims under your own policy are generally excluded unless your policy specifically covers DV. This guide explains when DV is recoverable in New Mexico, the controlling statutes, what to document, how to file, and why a professional SnapClaim appraisal strengthens your position.
Does New Mexico Allow Diminished Value Claims?
Third-party (at-fault driver’s insurer)
Yes. New Mexico law recognizes that property damage compensation includes not only the cost of repairs but also loss in market value, if proven. Courts have acknowledged that even after repairs, a vehicle can suffer DV.
First-party (your own insurer)
No, unless your policy explicitly provides it. Standard New Mexico auto insurance policies exclude DV from collision and comprehensive coverage. Unless you purchased an endorsement, you cannot claim DV against your own insurer.
Key New Mexico Law & Authority
- Statute of limitations: NMSA § 37-1-8 — 4 years to bring a property damage claim, including DV.
- Fault state: New Mexico is a fault-based state — the at-fault driver’s insurer must cover DV.
- Small claims court limit: $10,000 maximum for DV disputes.
- Comparative negligence: New Mexico follows pure comparative negligence — DV recovery is reduced by your share of fault.
Types of Diminished Value in New Mexico
- Immediate DV: Value lost right after the crash, before repairs.
- Repair-related DV: Loss due to poor or incomplete repairs.
- Inherent DV: The most common — even perfect repairs can’t erase accident history from Carfax or AutoCheck, lowering resale value.
What You Need to Document
- Accident report: Order through the New Mexico MVD Crash Report system.
- Repair invoices: Proof of repair work completed.
- Photos: Before-and-after damage and repair images.
- Market data: Comparable vehicle listings, trade-in quotes, Carfax history reports.
- Independent appraisal: A SnapClaim DV appraisal built on New Mexico market comparables.
Step-by-Step: Filing a Diminished Value Claim in New Mexico
- Establish fault. DV is only recoverable from the at-fault driver’s insurer.
- Repair your vehicle. DV is measured post-repair.
- Get a certified appraisal. Order a SnapClaim report documenting your loss.
- Send a demand package. Include your appraisal, repair records, and crash report to the insurer.
- Negotiate. Insurers may undervalue DV — be prepared to cite New Mexico’s recognition of property damage beyond repairs.
- Escalate if needed: File with New Mexico Office of Superintendent of Insurance or pursue small claims court up to $10,000.
Why a Professional New Mexico DV Appraisal Matters
Insurers in New Mexico often dispute diminished value without solid evidence. A SnapClaim appraisal provides the market-backed proof needed to win negotiations or court cases. For total loss disputes, see our Fair Market Value Reports. All reports are covered by our Money-Back Guarantee. Compare laws in other states with our Sta
Recover Diminished Value After an Accident in New Mexico
Under New Mexico law, if another driver causes a crash, you may be entitled to recover diminished value—the loss in your car’s fair market value even after quality repairs. A certified New Mexico diminished value appraisal provides the proof insurers require, showing the pre-accident value versus post-repair market value using real New Mexico comparables.
SnapClaim helps drivers across New Mexico—from Albuquerque to Santa Fe—document diminished value with fast, accurate, court-ready reports. Every appraisal includes a demand letter and is backed by our Money-Back Guarantee
"My 2022 Toyota Highlander was worth about $42,000 before the accident. After repairs, dealers only offered $36,500—a $5,500 loss. SnapClaim’s New Mexico diminished value appraisal documented the exact figure, and within 30 days the insurance company cut me a check covering the difference. It was the only reason I recovered that money."
Daniel R.
Santa Fe, NM
Frequently Asked Questions - New Mexico:
- Does New Mexico allow diminished value claims?
Yes. New Mexico permits diminished value claims in third-party accidents. If another driver is at fault, you can recover the lost resale value of your vehicle even after it has been repaired. For comparisons with other states, see our State Diminished Value Laws Guide.
- Why do I need a diminished value appraisal in New Mexico?
Insurance adjusters in New Mexico often minimize diminished value. A certified auto appraisal provides expert evidence of your car’s post-repair loss, based on real-world comparable sales. Get started with a free diminished value estimate.
- How much does a New Mexico diminished value appraisal cost?
See pricing details on our Pricing page. Every appraisal includes a certified report, an insurer-ready demand letter, and is covered by our Money-Back Guarantee.
- Will insurance companies accept a SnapClaim appraisal in New Mexico?
Yes. SnapClaim appraisals are widely used in negotiations and litigation. Many New Mexico drivers and attorneys rely on them to achieve better settlements. Learn the process in our Diminished Value Guide and see our blog: How to File a Diminished Value Claim.
- How fast can I get my New Mexico diminished value report?
Most appraisals are completed the same day, often within an hour. Your package includes a certified appraisal and a demand letter ready for your insurer. Details are in our Certified Appraisal Guide.
- Can I file a diminished value claim in New Mexico if I was at fault?
No. Diminished value is only available in third-party claims where another driver caused the accident. If your car was a total loss, consider a Fair Market Value Appraisal instead.
- What documents should I gather for a New Mexico diminished value claim?
Prepare your police report, repair estimates, invoices, parts list, photos (before and after repairs), and calibration/scan sheets. See our full checklist here: How to File a Diminished Value Claim.
- What is the deadline for a New Mexico diminished value claim?
New Mexico’s statute of limitations for property damage, including diminished value, is generally four years from the accident date. Don’t delay—early filing improves your case. Compare deadlines in our State Laws Guide.
- Where can I order a New Mexico diminished value appraisal?
Order securely online in minutes: Start My Appraisal. For total losses, request our Fair Market Value Appraisal.
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