How to File a Diminished Value Claim in Pennsylvania (2025 Complete Guide)
Nov 11, 2025
If your car has been in an accident in Pennsylvania, even high-quality repairs may not restore its full resale value. This reduction in market value is known as diminished value, and you may have the right to recover that financial loss.
A diminished value claim in Pennsylvania helps you recover the difference between your car’s market value before the accident and after it has been repaired.
What Is a Diminished Value Claim?
A diminished value claim is a demand for payment for the loss in your car’s market value after an accident. Even after professional repairs, the car is usually worth less because the accident will appear on a vehicle history report like Carfax.
Buyers often offer less money for a car with a prior accident, even if it looks and runs perfectly. A diminished value claim allows you to recover that lost value from the at-fault driver’s insurance company.
Why Diminished Value Claims Matter in Pennsylvania
After an accident, you shouldn’t have to lose money when selling your car because of another driver’s mistake. A Pennsylvania diminished value claim ensures you get compensated for your car’s true loss in resale value.
While these claims can be challenging, Pennsylvania law recognizes your right to recover fair compensation when another person’s negligence reduces your car’s worth.
Who Can File a Diminished Value Claim in Pennsylvania?
You may be eligible to file a diminished value claim in Pennsylvania if the following apply:
You were not at fault for the accident
The at-fault driver’s insurance company covers your damages
Your car is less than 10 years old and has no previous major accidents
You have proof of repairs and reduced market value
Your vehicle has a clean title and was in good condition before the crash
If you caused the accident or your claim is through your own insurer, you typically cannot pursue diminished value unless your policy specifically allows it.
Types of Diminished Value in Pennsylvania
There are three types of diminished value recognized by insurers and courts:
Inherent Diminished Value – The most common type in Pennsylvania, this refers to the reduced market value that remains after proper repairs because the car now has an accident history.
Immediate Diminished Value – The theoretical loss in value immediately after the accident but before repairs. Rarely pursued.
Repair-Related Diminished Value – When the use of non-OEM parts or poor workmanship reduces your car’s value further.
Most Pennsylvania claims are based on inherent diminished value, which represents the long-term impact on resale value.
How to File a Diminished Value Claim in Pennsylvania
To file a diminished value claim in Pennsylvania, gather repair records, photos, and an appraisal showing your car’s lost value. Submit these to the at-fault driver’s insurance company, then negotiate a fair settlement to recover your vehicle’s reduced market worth after the accident.
Filing a diminished value claim in Pennsylvania involves a few clear steps. Being prepared with documentation and professional support can significantly improve your chances of success.
1. Gather Evidence and Documentation
Collect all necessary paperwork, including the police report, repair estimates, invoices, photos of the damage, and post-repair images. Keep every record related to the accident and the repairs.
2. Get a Professional Appraisal
A third-party appraiser can determine how much value your car lost due to the accident. A professional appraisal provides an unbiased report that the insurance company can use to calculate compensation.
3. File Your Claim with the At-Fault Driver’s Insurance
Submit a written diminished value claim to the at-fault driver’s insurance company. Include your appraisal report, supporting documents, and a statement explaining that you are seeking compensation for the loss in your vehicle’s market value.
Be clear and professional. State that Pennsylvania law allows recovery for vehicle value loss when caused by another driver’s negligence.
4. Negotiate with the Insurance Company
Insurance companies often undervalue or deny diminished value claims. If this happens, provide additional appraisals, written estimates, and market comparisons.
If negotiations fail, you may take the case to the Pennsylvania small claims court, where you can seek damages up to $12,000, depending on the county.
Pennsylvania Law on Diminished Value Claims
Pennsylvania allows diminished value claims under its tort-based insurance system. This means that if another driver causes your accident, you can seek compensation for both physical damage and diminished market value.
The legal principle behind diminished value is the same as in property damage claims — you can recover the difference between your car’s market value before the accident and its value afterward, even after repairs.
Pennsylvania courts recognize that a repaired vehicle may still be worth less, and that this loss is a legitimate form of damage.
Pennsylvania’s Comparative Negligence Rule
Pennsylvania follows a modified comparative negligence system. This means your ability to recover damages depends on your share of fault.
If you are 50% or less at fault, you can still recover compensation, but your payment will be reduced by your percentage of fault. If you are more than 50% at fault, you cannot recover any damages.
This rule makes it crucial to prove that the other driver was primarily responsible for the accident.
Statute of Limitations for Diminished Value Claims in Pennsylvania
In Pennsylvania, you have two years from the date of the accident to file a diminished value claim.
If you miss this deadline, your right to recover compensation for your vehicle’s lost value will expire. It is best to start the process early and allow time for appraisals, communication, and negotiations.
How to Calculate a Diminished Value Claim
There is no official formula for calculating diminished value in Pennsylvania. While some insurers use methods like the 17c formula, these often underestimate the actual loss.
To determine your car’s true diminished value, consider the following:
Pre-accident fair market value
Post-repair market value
Vehicle make, model, mileage, and age
Severity of the damage
Professional appraisals and comparable vehicle sales
Having a qualified appraiser prepare your report can make your claim stronger and more credible.
What If the Insurance Company Denies Your Claim?
Insurance companies may deny your diminished value claim for reasons such as:
They believe repairs have fully restored the car’s value
They argue the damage was too minor
They dispute who was at fault
If your claim is denied, request a written explanation, provide additional appraisals, or escalate the claim.
You can also file a complaint with the Pennsylvania Insurance Department or take the matter to small claims court if necessary.
Persistence and proper documentation often lead to favorable outcomes.
Diminution of Value in Pennsylvania
“Diminution of value” refers to the measurable loss in your vehicle’s resale value after it’s been repaired. Pennsylvania law recognizes this loss as recoverable property damage.
To prove this, you’ll need a third-party appraisal, market comparisons, and documentation showing how your car’s accident history reduced its market value.
Why Choose My Fair Claim for Your Diminished Value Claim in Pennsylvania
Filing a diminished value claim can be complicated, especially when insurance companies push back. My Fair Claim helps Pennsylvania drivers recover the real market value their cars lost after an accident.
How My Fair Claim Helps You
Our experts have helped thousands of vehicle owners recover thousands of dollars in lost value. Whether you’re in Philadelphia, Pittsburgh, or anywhere in Pennsylvania, we handle the paperwork, negotiation, and follow-up so you can focus on moving forward.
If your car has been repaired after an accident that wasn’t your fault, you may be entitled to compensation. Here is how My Fair Claim can help you -
Free claim review to determine if you qualify
Professional appraisals using verified Pennsylvania market data
Complete claim management from start to finish
No upfront cost – you only pay when you win
Start your Pennsylvania diminished value claim today with My Fair Claim and find out how much your vehicle’s true value has dropped.