How to File a Diminished Value Claim in Arizona
Oct 28, 2025
When a car accident happens, the financial impact doesn’t end after repairs. Even a perfectly restored vehicle can lose resale value simply because it now has an accident history.
That loss is called diminished value, and under Arizona law, you may be entitled to compensation for it.
If you’ve been wondering how to file a diminished value claim in Arizona, this guide walks you through the process, challenges, legal background, and how to maximize your payout.
Understanding Arizona’s Diminished Value Law
Arizona is one of the few states that clearly recognizes diminished value claims. The state allows vehicle owners to seek reimbursement for the loss in market value caused by an accident, even after all repairs have been completed.
In short, if someone else caused the crash, their insurance company may owe you money for the depreciation in your car’s value.
This principle was established by the Arizona Court of Appeals in Oliver v. Henry (2011), which affirmed that car owners can claim compensation for value loss even without selling the vehicle.
Key Takeaways from the Ruling:
You don’t need to sell the car to prove loss — a professional appraisal is enough.
Diminished value occurs immediately after the accident, not when you sell.
You bear the burden of proof, meaning you must show clear evidence of your car’s lost value.
What Is a Diminished Value Claim?
A diminished value claim compensates you for the difference between your car’s value before and after an accident.
Even when repairs restore safety and appearance, potential buyers see accident history as a red flag, reducing your car’s resale price.
Types of Diminished Value:
Immediate Diminished Value – The instant drop in value after an accident occurs.
Inherent Diminished Value – The permanent reduction in value simply due to the vehicle’s damage history, even after proper repairs.
Repair-Related Diminished Value – The loss caused by incomplete, low-quality, or non-OEM repairs.
In Arizona, inherent diminished value is the most commonly claimed and legally recognized form.
Who Can File a Diminished Value Claim in Arizona?
You can typically file a claim if:
The accident was not your fault.
Your vehicle is less than 10 years old and in good condition.
You can provide proof of repairs and a professional diminished value appraisal.
The claim is filed within two years of the accident date (as per Arizona’s statute of limitations for property damage).
Leased or financed vehicles may also qualify, though eligibility depends on your lender’s or lease agreement’s terms.
Step-by-Step: How to File a Diminished Value Claim in Arizona
To file a diminished value claim in Arizona, gather accident details, get a certified appraisal, and submit your claim to the at-fault insurer with proof of value loss. Negotiate for fair compensation or get expert help if needed.
Here are the right steps in detail that will greatly increase your chances of success.
Step 1: Document the Accident
Immediately after the collision:
Take clear photos of the damage from multiple angles.
Obtain a police report and repair invoices.
Save any communication with insurance companies or repair shops.
These documents are crucial to proving your case later.
Step 2: Notify the Insurance Company
Inform the at-fault driver’s insurance that you intend to pursue a diminished value claim.
Avoid filing with your own insurer unless your policy explicitly covers diminished value (most do not).
Provide them with the initial accident documentation and make it clear you’re seeking compensation for loss in market value, not just repairs.
Step 3: Get a Professional Diminished Value Appraisal
Hire a certified auto appraiser in Arizona to determine:
The vehicle’s pre-accident value
The current post-repair market value
The total loss amount (diminished value)
A professional appraisal report carries far more weight than online calculators or insurer estimates and serves as independent evidence if your claim is disputed.
Step 4: Submit Your Claim
With your appraisal and documents in hand:
File a formal diminished value claim with the at-fault insurer.
Include all supporting documents: repair receipts, appraisal, police report, and photos.
Request a written acknowledgment and timeline for review.
Expect some negotiation — insurance companies often start with lowball offers or deny the claim entirely.
Step 5: Negotiate or Escalate
If the insurer undervalues or denies your claim:
Request their written explanation for the offer.
Reiterate your appraisal findings and provide market comparisons.
If needed, appeal through Arizona’s small claims court or consult a diminished value specialist like My Fair Claim to represent you.
Common Challenges When Filing a Diminished Value Claim
Even with strong evidence, you might encounter a few hurdles during the process:
Insurance Denials – Insurers often reject DV claims, arguing repairs restored full value.
Disputes Over Appraisal – Some carriers question independent appraisals or use formulas (like the 17c formula) that minimize your loss.
Proving Actual Value Loss – You’ll need credible data, not just estimates, to show depreciation.
Legal and Procedural Complexity – Each insurance company may interpret Arizona’s diminished value law differently, requiring expert handling.
If you’re unsure how to proceed, consulting an experienced Arizona diminished value claims expert or attorney can simplify the process and strengthen your case.
How Much Compensation Can You Get?
The amount you can recover depends on your car’s make, model, age, mileage, and the severity of damage.
Here’s a general idea:
Minor damage: $300 – $800
Moderate accidents: $1,000 – $3,000
Major repairs or newer vehicles: $4,000 – $7,500+
Luxury cars and newer models tend to yield higher diminished value payouts, while older or high-mileage vehicles qualify for less.
Legal Precedent: Oliver v. Henry (2011)
In the landmark case Oliver v. Henry (2011), the Arizona Court of Appeals affirmed that diminished value is a valid and recoverable loss under Arizona law.
The court ruled that:
A vehicle owner doesn’t need to sell the car to prove diminished value.
The depreciation happens immediately after the accident.
An expert appraisal is sufficient evidence of loss.
This ruling ensures Arizona vehicle owners can legally recover value depreciation when someone else’s negligence causes the accident.
Why You Should Get Professional Help
Filing a diminished value claim might sound straightforward, but insurers often use delay tactics or lowball offers to minimize payouts.
Working with a professional appraiser or claims expert can:
Strengthen your documentation
Improve negotiation outcomes
Save time and frustration
Increase your total settlement value
My Fair Claim specialize in handling Arizona diminished value claims, offering fair, data-backed appraisals that help you recover the money you deserve.
Conclusion
If your car was repaired after an accident in Arizona, don’t assume the loss ends there. The Arizona diminished value law protects your right to recover compensation for depreciation in your vehicle’s worth.
By following the right steps, documenting your damage, obtaining a credible appraisal, and negotiating confidently, you can successfully file a diminished value claim and reclaim what you’ve lost.
And if you’d rather skip the stress, let professionals like My Fair Claim handle the process from start to finish, ensuring you get maximum compensation for your vehicle’s true value.
Key Takeaways You Should Know
Diminished value claims are legal and enforceable in Arizona.
File within two years of the accident.
Always use a professional appraisal to prove loss.
Expect negotiation, insurers often start low.
Expert help can significantly boost your payout.
Need Help Filing a Diminished Value Claim in Arizona?
If you want a hassle-free, accurate, and fast diminished value assessment, contact My Fair Claim.
Their experts specialize in Arizona claims and can help you recover the full value your vehicle deserves.