How to Handle Diminishing Value Claims in Texas

Texas is known as a diminished value state, meaning that you might be entitled to the diminished value of your car after an accident. As a result, it’s important to know the facts regarding a diminishing value claim in Texas.

What is Diminished Value?

What, specifically, is auto accident diminished value? And what is the average diminished value claim? Car accident diminished value refers to the difference in your car’s market value from before to after the car accident. The market value of your car decreases after a car accident, even if it is restored to perfect condition. This is because the vehicle’s history report will now have an accident listed.

Types of Diminished Value

There are a few different types of diminished value Texas:

  • Repair-related Texas diminished value. Repair-related Texas diminished value refers to the loss of value due to the inability to perfectly repair the car, meaning that the car is currently worth less following repairs than before the car accident.
  • Immediate Texas diminished value. Immediate Texas diminished value refers to the difference in the resale value of a car before damage happened and the resale value after damage has happened before being repaired. The immediate diminished value also refers to the loss of value caused by the insurer’s direct involvement in the claim adjustment. The insurer then gains control over the repairs, resulting in repairs incomplete, insufficient, or leaving the car in substandard condition.
  • Inherent Texas diminished value. Inherent Texas diminished value is the most widely recognized and accepted form of diminished value. This ensures that the best repair quality has been achieved and is defined as the amount by which the resale value of a repaired car has been reduced due to a car accident.

Can I File a Diminished Value Claim in Texas?

Wondering if you can file a diminished value car accident claim in Texas? The short answer is yes. Texas is a diminished value state. Here’s what you need to know about how to make and file a diminished value claim in Texas, how to qualify, and the statute of limitations.


According to Texas diminished value laws, the statute of limitations on diminishing value claims in Texas is two years, and Texas has uninsured motorist coverage for diminished value. You can’t submit a loss of value claim if you were the at-fault party in a car accident or if the car damage was caused by something other than a collision. You also must prove that your vehicle lost value.

Calculating Your Diminished Value

A professional can help you calculate your diminished value, but it’s also possible for you to calculate this on your own, using a diminished value calculator for Texas. Diminished value is calculated by considering the type and extent of damage on the vehicle, the cost to repair the vehicle, the repair quality, the cost of similar vehicles never involved in an accident, and market trends. We recommend working with a car accident attorney who can present an accurate valuation of your vehicle rather than relying on your insurance company to value your car fairly.

Factors that Impact Value

There are a number of factors that affect the diminished value of the car, including:

  • Age of vehicle
  • Mileage of vehicle
  • Make and model of vehicle
  • History of accidents

Using the 17c Formula as a Free Diminished Value Calculator

Insurers typically use the 17c formula to calculate a car’s diminished value. However, this has some limitations that can lower diminished value appraisals than a car’s actual worth. Here is how to calculate diminished value using the 17c formula:

  • Check your car’s value
  • Calculate the base loss of value by multiplying by 10%
  • Apply a damage multiplier
  • Apply a mileage multiplier

Submitting a Diminished Value Claim

When you file a personal injury claim, property damage is only one portion of your losses. You need to state that you want to make a diminished value claim.  In order to qualify to make that claim, you need to show that your car lost value due to the car accident, that there is a particular dollar amount of value lost on the car, and that the insurance company policy covers diminished value.

We recommend keeping all receipts and estimates you have received related to your diminished value claim. Present these receipts and estimates to your lawyer, who will give them to the insurance agent along with a demand for a diminished value claim. Once the at-fault driver’s insurance company receives a demand for diminished value, they will probably attempt to negotiate the final amount of compensation. They might attempt to include diminished value in a settlement along with other losses for the entirety of your claim.

If you want to learn more about diminishing value claim Texas, contact the Texas car accident lawyers at Thomas J Henry Law. Our firm has offices in Corpus Christi, San Antonio, Austin, Houston, and Dallas serving clients across Texas and nationwide. With our experienced personal injury lawyers on your side, you’ll be able to navigate the complexities of a Texas diminished value claim.

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