What is diminished value?
Diminished value is the loss in market value that a vehicle suffers after being involved in a collision, even when properly repaired. Connecticut law recognizes that a rational buyer will pay less for a vehicle with accident history, regardless of repair quality. The measure of damages is the difference between the vehicle’s fair market value before the collision and its fair market value after repairs.
How does it work?
Connecticut courts rely on expert appraisers who use various methodologies to calculate diminished value. Experts typically establish pre-loss value using industry guides like JDPower, CarFax, Kelley Bluebook, etc., then determine post-repair value by analyzing comparable vehicles with similar accident histories. Typically, both the claimant and insurance company will retain experts to assess the diminished value of the vehicle. At this point, it becomes a battle of the experts.
What if I am financing the vehicle?
Connecticut law does not prevent financed vehicle owners from pursuing diminished value claims. The key requirement is ownership of the vehicle at the time of the accident. Financing arrangements usually involve the lender holding a security interest while the borrower retains ownership rights, including the right to pursue claims for damage to the vehicle.
What if I am leasing the vehicle?
If you are leasing your vehicle, you cannot make a diminished value claim because you are not the owner of the vehicle. Only the actual owner (typically the leasing company) would be able to pursue a claim.
What if the other party doesn’t have insurance? Will my own insurance cover diminished value?
Diminished value claims in Connecticut are tort-based claims against the at-fault party. Therefore, you cannot make a claim for diminished value through your own insurance policy. If the at-fault driver is uninsured, your only option is to pursue the claim directly against that driver. However, even if you win, you may have difficulty collecting the judgment.
What if my car has been involved in prior collisions?
Prior accident history affects the diminished value calculation. Connecticut experts consider the vehicle’s complete accident history when determining both pre-loss value and the impact of the current accident. A vehicle with multiple accidents will have less diminished value from each subsequent accident because its baseline value is already reduced.
What if my car has been involved in subsequent collisions?
Subsequent accidents can complicate the diminished value claim from the original accident. The damages must be apportioned between the different accidents, and you can only recover diminished value attributable to the specific defendant’s negligence.
What if the accident was my fault?
You cannot pursue a diminished value claim if you were at fault for the accident. Diminished value is a tort claim that requires proving another person’s negligence caused the damage to your vehicle.
What if my accident happened in a different state?
In order for Connecticut law to apply to your diminished value claim, the accident must have occurred within the state of Connecticut. New York recognizes diminished value claims in very limited circumstances for vehicles that are deemed to have appreciating value, such as classic and high-end vehicles. Other surrounding states such as Massachusetts, New Jersey and Rhode Island recognize diminished value law similar to that of Connecticut.
What if someone else was driving my car? Or if my car is hit while parked?
As the owner of the vehicle, you can pursue a diminished value claim regardless of who was driving at the time of the accident (or even if the car was unoccupied while parked), provided the other driver was at fault. The claim belongs to the vehicle owner, not the driver.
What if my car was totaled?
When a vehicle is deemed a total loss, diminished value becomes part of the total loss calculation rather than a separate claim. The insurance company pays the actual cash value of the vehicle, which inherently accounts for the complete loss of value.
What if my car was never repaired?
Before making a claim for diminished value, you must have your car repaired in order to show that the vehicle has suffered a loss in value despite being fully repaired.
Can I pursue diminished value if I plan to keep the car long-term?
Yes, Connecticut law allows diminished value recovery regardless of whether you plan to sell the vehicle. The diminished value represents an immediate loss that occurred at the time of the accident, not a future loss upon sale. Your future plans for the vehicle do not affect your right to compensation for the current loss in value. However, it is generally recommended that you resolve your diminished value claim prior to selling the vehicle.
What if my car is very old or has high mileage?
Age and mileage significantly affect diminished value claims. It is unlikely to recover large diminished value awards for older vehicles with high mileage, as these vehicles inherently have less room for value loss.
How long do I have to file a diminished value claim?
Diminished value claims in Connecticut are subject to a two-year statute of limitations under Connecticut General Statutes § 52-584, which governs negligence actions involving property damage. If you cannot resolve your claim, a lawsuit must be brought within two years from the date of the accident.