Diminished value is the difference between what your vehicle was worth before a crash and what it's worth after repairs. Texas recognizes the right to recover this loss from the at-fault driver's insurer.
The three types of diminished value
- Inherent diminished value — the stigma of a crash history alone
- Repair-related diminished value — quality of repair shortfalls
- Immediate diminished value — value lost before any repair happens (used in total-loss cases)
How Texas insurers value the claim
Most Texas adjusters use the 17c formula (the result of a Georgia court case widely adopted): base loss capped at 10% of pre-loss value, adjusted for damage severity and vehicle mileage.
First-party vs third-party
Texas allows diminished value claims against the at-fault driver's insurer (third-party). Most carriers exclude DV claims against your own insurer (first-party) under policy language.
How to support your claim
- Get an independent appraisal from a licensed appraiser
- Document the repair quality with photos and invoices
- Save comparable sales data showing crashed vs clean-title pricing
Time limits
Diminished value falls under the same two-year statute of limitations as the underlying property damage claim.
Frequently asked questions
Can I claim diminished value in Texas?
Yes — against the at-fault driver's insurer. First-party DV claims (against your own insurer) are generally excluded.
How much is a typical diminished value claim?
Usually 10% or less of pre-loss value, depending on damage severity, age, and mileage.
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.