Diminished Value Appraisal in
North Dakota

Last updated: August 18, 2025

In North Dakota, your car may lose market value even after high-quality repairs following a collision. That reduction in resale value is known as diminished value (DV). Under North Dakota law, you may recover DV in third-party liability claims against an at-fault driver’s insurer. This guide explains when DV is allowed, the governing law, what documentation you need, deadlines, and why a professional SnapClaim appraisal gives you the best chance at full recovery.

Does North Dakota Allow Diminished Value Claims?

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

Yes. North Dakota law permits property damage recovery for the difference in fair market value before and after the accident. Courts recognize that even if repairs are completed, a vehicle can still suffer lost value that the negligent party must compensate.

First-party (your own insurer)

Generally excluded. Most North Dakota policies limit coverage to the cost of repairs or actual cash value (ACV). Unless your policy explicitly includes DV coverage, you cannot pursue DV against your own insurer.

Key North Dakota Law & Authority

• Measure of damages: North Dakota follows the general rule that property damage equals the lesser of (1) the cost of repair plus any remaining loss in value, or (2) the pre-loss fair market value. See Risovi v. Farmers Union Mktg. & Processing Ass’n, 2000 ND 74.
• Statute of limitations: N.D. Cent. Code § 32-12.1-10 — generally 6 years for injury to personal property.
• Comparative fault: Modified comparative negligence (50% bar) — recovery is reduced by your percentage of fault and barred if you are 50% or more at fault.
• No-fault system: North Dakota is a no-fault state for personal injury (PIP), but DV claims are outside of no-fault and must be pursued against the at-fault driver’s insurer.
• Small claims: Up to $15,000 in small claims court (North Dakota Courts Small Claims Guide).
• Insurance complaints: File with the North Dakota Insurance Department.

Types of Diminished Value in North Dakota

• Immediate DV: Value lost immediately after the crash, before repairs are made.
• Repair-related DV: Reduction in value from incomplete or substandard repairs.
• Inherent DV: The most common type — even with quality repairs, a vehicle with accident history is worth less than an undamaged one.

What You Need to Document

• Accident report: Obtainable from the North Dakota Highway Patrol Records Division.
• Repair estimates and invoices: Parts, labor, and final work documentation.
• Photographs: Before and after the repairs.
• Market evidence: Comparable vehicle listings, dealer trade-in offers, Carfax/AutoCheck reports.
• Certified DV appraisal showing loss in North Dakota’s used-car market.

Step-by-Step: Filing a Diminished Value Claim in North Dakota

1. Confirm liability. DV applies only if another driver was at fault.
2. Repair the vehicle. DV is calculated on a post-repair basis.
3. Obtain a DV appraisal. A SnapClaim report provides market-based evidence adjusters must consider.
4. File a demand letter. Send your appraisal, repair records, and accident report to the at-fault driver’s insurer.
5. Negotiate. Insurers may attempt to minimize DV — cite Risovi and North Dakota’s damage rules in your correspondence.
6. Escalate if necessary: File a complaint with the Insurance Department or pursue small claims court (≤ $15,000).

Why a Professional North Dakota DV Appraisal Matters

Insurers in North Dakota often downplay or deny diminished value unless supported by expert evidence. A SnapClaim Diminished Value Appraisal uses North Dakota-specific market data to prove your loss, strengthening your negotiations and legal position. For total loss disputes, see our Fair Market Value Appraisals. Every SnapClaim report is backed by our Money-Back Guarantee. Explore more states in our State DV Law Guide.