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Diminished Value Claim Illinois

Published on: May 29, 2024 | Last Updated on: July 31, 2026
Michael Agruss

Written and Reviewed by Michael Agruss

  • Managing Partner and Personal Injury Lawyer at 844SeeMike Personal Injury Lawyers.
  • Over 20 years of experience in Personal Injury.
  • Graduated from the University of Illinois Chicago School of Law: Juris Doctor (2004).

Key Takeaways

  • Diminished value refers to the reduced market worth of a vehicle after it’s been involved in an accident, even if fully repaired.
  • Illinois allows non-at-fault drivers to file a diminished value claim against the at-fault driver’s insurance or their own if uninsured motorist coverage applies.
  • The most common type is inherent diminished value, reflecting general loss due to accident history.
  • Professional appraisals strengthen claims and help calculate the actual value loss.
  • Claims must be filed within five years of the accident.
  • Proper documentation and negotiation are key to receiving fair compensation.

If your car was damaged in an Illinois crash that was not your fault, its market value likely dropped the moment it gained an accident history, even after flawless repairs. A diminished value auto claim lets you recover that lost value from the at-fault driver’s insurance company, and in Illinois you generally have up to five years from the date of the crash to pursue it (735 ILCS 5/13-205).

Insurance companies rarely volunteer this money, and many drivers never realize they are owed it. Here is how diminished value works in Illinois, how it is calculated, and how to file a claim that insurers take seriously.

Decreasing Stack Of Coins

Understanding Diminished Value in Illinois

When a vehicle is in an accident, its resale value usually falls regardless of how well it is repaired. This drop, known as diminished value, reflects what the market will actually pay for a car that now shows a collision on its history report. Two cars in identical condition can carry very different price tags when one has a clean record and the other does not.

Types of Diminished Value

Diminished value in Illinois generally falls into three categories:

  • Immediate diminished value, the loss in value right after the crash and before any repairs
  • Inherent diminished value, the most common type, reflecting the stigma a repaired car carries simply because it was in a wreck
  • Repair-related diminished value, extra loss caused by incomplete or low-quality work, mismatched paint, or non-OEM parts

Most claims center on inherent diminished value, since even a perfectly repaired car sells for less once the accident appears on a report like CarFax or AutoCheck.

Illinois Law and Diminished Value Claims

Illinois recognizes diminished value as a real, recoverable loss. If another driver caused the crash, you can seek the difference between your vehicle’s pre-accident value and its value after repairs. Because a diminished value claim is a form of property damage, the deadline follows the Illinois five-year limit for injury to property (735 ILCS 5/13-205). That gives you time to get an appraisal, but two shorter deadlines can override it. If a city, county, transit agency, or other local public entity owned the vehicle or is otherwise responsible, you have only one year to sue (745 ILCS 10/8-101), and if you were hurt in the same crash, the injury side of your case runs on the two-year personal-injury clock (735 ILCS 5/13-202). Starting early also keeps your evidence fresh and your leverage strong.

Who Can File a Diminished Value Claim

To recover diminished value in Illinois, you generally must not be the at-fault driver. The claim goes to the at-fault driver’s insurance company. If that driver was uninsured, your own policy is a much narrower fallback. Illinois requires insurers to make uninsured motorist property damage coverage available, but it is optional coverage you have to be carrying, it pays no more than your vehicle’s actual cash value or your coverage limit, it can carry a deductible of up to $250, and it pays nothing at all if the at-fault driver cannot be identified (215 ILCS 5/143a). Whether a first-party policy covers diminished value on top of repair costs depends on how that policy is written, so check the coverage language before you count on it. Newer vehicles, luxury models, and low-mileage cars tend to lose the most value, so they often make the strongest claims. If you are unsure what your overall case might be worth, our injury settlement calculator is a useful starting point.

How Diminished Value Is Calculated

Calculating diminished value starts with your car’s pre-accident market value, then measures how much less it is worth after repairs. The severity of the damage, plus your vehicle’s make, model, mileage, and condition, all affect the number. A common starting formula is:

Diminished Value = Pre-Accident Value − (Repaired Vehicle Value + Inherent Loss of Value)

Many insurers instead reach for the 17c formula, which caps the base value at 10 percent and then applies damage and mileage multipliers. That method often understates the real loss, which is why an independent appraisal usually produces a more accurate and more defensible figure.

How to File a Diminished Value Claim in Illinois

Filing a diminished value claim in Illinois follows a clear path:

  • Gather your documentation, including the crash report, repair invoices, and photos of the damage before and after repairs
  • Get an independent appraisal that establishes your pre-accident value and the post-repair loss
  • Notify the at-fault driver’s insurer in writing that you intend to file a diminished value claim
  • Submit your appraisal and supporting evidence, then be ready to counter a low first offer
  • Escalate to a lawsuit before your filing deadline runs if the insurer refuses a fair amount

Strong evidence is what moves these claims. The more clearly you can show what the vehicle was worth before the crash and how much value it lost after repairs, the harder it is for an adjuster to dismiss your number.

Dealing With Insurance Companies

Insurers dispute diminished value claims because paying them raises the cost of a case. Common arguments are that the repairs fully restored the car, that the loss is too speculative to measure, or that the damage was not severe enough to matter. A well-documented appraisal answers each of these. The Illinois Department of Insurance explains how total-loss and auto claims are handled, and you can file a complaint if an insurer acts in bad faith.

When to Hire a Lawyer

Legal help matters most when the insurer denies the claim, lowballs the offer, or drags out the process. An Illinois car accident lawyer can bring in appraisers, use market data, and push for the full amount you are owed. 844-SEE-MIKE works on a contingency fee, so you pay nothing unless money is recovered for you. Drivers in the city can reach a Chicago car accident lawyer on the same terms, and our car accident FAQs answer many of the questions that come up after a crash.

Frequently Asked Questions

Is a diminished value auto claim worth it?

It often is when the vehicle is newer, higher-value, or suffered significant damage, because the resale loss can run into thousands of dollars. Older or high-mileage cars may see smaller losses. A professional appraisal tells you whether the claim is worth pursuing before you invest time in it.

How much is a diminished value claim worth?

There is no fixed amount. The value depends on your car’s pre-accident price, the severity of the damage, and its make, model, and mileage. It is frequently a meaningful share of the vehicle’s pre-accident value, but only an independent appraisal can pin down your specific figure.

How long does it take to settle a diminished value claim?

Straightforward claims can settle within a few weeks once the insurer has your appraisal. Disputed claims take longer, sometimes several months, especially when the insurer contests the loss or the case moves toward litigation.

How long do I have to file a diminished value claim in Illinois?

Illinois generally gives you up to five years from the date of the crash to file a property damage claim, which includes diminished value (735 ILCS 5/13-205). The exception that catches people out is a claim against a city, county, or other local public entity, where the window is only one year (745 ILCS 10/8-101). Acting sooner protects your evidence and strengthens your position.

Talk to 844-SEE-MIKE About Your Diminished Value Claim

A crash can leave you juggling injuries, repairs, and the frustrating realization that your car is worth less than it used to be, even after the work is done. The team at 844-SEE-MIKE can review what your vehicle lost and deal with the insurer for you, so you can focus on getting back to normal. Contact 844-SEE-MIKE anytime for a free, no-pressure consultation. This information is general and not legal advice for your specific situation.

Submitted Comments

Fatih
2 years ago
Someone hit my car in Peoria, IL and they were at fault. I went through my own insurance and my car is repaired. They started subrogation and turned out that at fault driver did not have active insurance coverage. My insurance company charged me $1000 deductible under collision coverage and they are not accepting any claim for diminished value. The damage to the car was around 50% of its value. I was an Iowa resident and had an Iowa policy at the time of accident.
George
2 years ago
I run an exotic car rental company and my client wrecked a Lamborghini Huracan and State Farm did pay for repairs, but is refusing to pay the $300k for Diminished Value and Loss of Use. Need you help filing a lawsuit, thank you.
Jesus
2 years ago
My car was hit while parked. We made a police report where the other driver admitted guilt. It’s been a week and their insurance (direct auto)refuses to start the process untill they get a statement from the driver. I need my car fixed so I decided to make a claim through my insurance (State Farm). The quote comes out to $11,500. Can I get diminished value also? Should I wait for direct auto? Or continue my claim with my insurance?
jeevan
2 years ago
My car was hit from behind and I have a Diminshed value claim in Illinois.
Paul
2 years ago
diminished value claim
Emily
2 years ago
I was rear ended on 10/09/24. My car is longer in the condition it was, even after repairs were made.
Christopher
2 years ago
DV claim for on my personal vehicle for an uninsured at fault party. My insurance is covering the repair is State Farm. Am I eligible for a DV claim through my policy?
Margaret
2 years ago
I was rear-ended on Dec 13, 2024 with major structural damage my vehicle. The repairs to the vehicle were completed and I tried to file a diminished value claim with the insurance company. The adjuster is being intentionally obtuse about the loss of value and stating I need to prove it. I have a police report and pre-accident value. I need help getting post-accident value as the police report is taking a while to show up on public databases. Thanks. -Margaret
JIM
1 year ago
My wife was hit from behind. The drivers insurance refused to pay because she claimed that someone had hit her. There was no other car in the incident. she had no infomation about the type of vehicle that supposedly hit her. She could not provide any information to the police. Is she still liable fpr damages and diminished value?
Miguel
1 year ago
Looking for a fair settlement in my diminished value claim against Kemper Auto.
Michael
4 months ago
Diminished Value Claim.
Andrew
3 months ago
I sent my Ferrari to Ferrari dealer and they got in an accident. I am looking for an attorney regarding the diminished value and loss of use for months.

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