Texas recognizes 'inherent diminished value' — the reduced market value of a vehicle that has been in a crash, even after it is fully repaired. The Texas Supreme Court confirmed this right in Mabry v. Travelers (2002). El Paso drivers can pursue diminished value claims against the at-fault driver's insurer.
Who can file
You can pursue diminished value against the at-fault driver's liability carrier. You generally cannot pursue it against your own insurer under a standard Texas policy.
How much is the claim worth?
Depends on the vehicle's year, make, mileage, severity of damage, and quality of repair. Typical diminished value claims run 10–25% of the pre-loss ACV. A $40,000 SUV with structural damage could lose $4,000–$10,000 of value even after repair.
Documenting the claim
- Pre-loss value (comparable sales)
- Repair invoices showing nature and quality of repair
- Post-repair appraisal from a qualified independent appraiser
- Carfax/AutoCheck reports showing the accident now appears
Timeline
File the diminished value claim within two years (Texas statute of limitations on property damage). It can be filed alongside or after the property damage claim resolves.
Frequently asked questions
Can I file a diminished value claim in Texas?
Yes, against the at-fault driver's insurer. Texas recognizes inherent diminished value.
How much is a typical claim?
10–25% of pre-loss ACV is common, depending on damage severity and vehicle desirability.
Can I claim diminished value from my own insurer?
Generally no under standard Texas policies. The claim is against the at-fault driver.
Do I need an independent appraiser?
Strongly recommended. Insurer appraisals tend to minimize diminished value.
How long do I have to file?
Two years from the date of the accident.
This article is for general information only and is not legal or tax advice. For guidance specific to your situation, talk to a licensed Texas insurance agent. Ready to put it into practice? Get a free quote or request a policy review.