What Is a Diminished Value Claim?

A diminished value claim compensates you for the reduction in your vehicle’s market value after an accident, even if repairs were completed properly. Buyers and dealers typically pay less for vehicles with an accident history, which means you absorb a financial loss unless you file a claim.

In Nevada, diminished value claims are typically filed against the at-fault driver’s insurance company, not your own, unless your policy explicitly includes diminished value coverage.

Are Nevada Diminished Value Claims Legal?

Yes. Nevada diminished value claims are allowed, but they are not automatic. Nevada follows an at-fault insurance system, meaning the driver who caused the accident is financially responsible for damages, including diminished value. The burden is on the vehicle owner to prove that the loss exists and to document the reduced value.

Types of Diminished Value

There are three main types of diminished value recognized in claims:

1. Immediate diminished value – The loss in value immediately after the accident.

2. Inherent diminished value – The most common type, based on the vehicle’s accident history even after repairs.

3. Repair-related diminished value – Occurs when repairs are substandard or incomplete.

Most Nevada diminished value claims focus on inherent diminished value, as it applies even when repairs are done correctly.

How to File a Diminished Value Claim in Nevada

To successfully file a diminished value claim in Nevada, follow these steps:

• Confirm the other driver was at fault

• Gather accident and repair documentation

• Obtain a professional diminished value appraisal

• Submit a demand letter to the at-fault insurer

• Negotiate or escalate if the claim is undervalued or denied

Insurance companies often minimize or reject diminished value claims initially, making proper documentation essential.

Factors That Affect Nevada Diminished Value Claims

Several factors impact the strength and value of your claim, including:

• Vehicle age and mileage

• Pre-accident condition

• Severity of the damage

• Type of vehicle (luxury and newer cars often qualify for higher claims)

• Market demand in Nevada

Newer vehicles and high-value cars tend to suffer greater diminished value than older vehicles.

Why Insurance Companies Push Back

Many insurers downplay diminished value because it is not clearly defined by statute. However, Nevada law allows recovery for all measurable losses caused by another driver’s negligence. With a professional appraisal and strong demand letter, Nevada diminished value claims can be successfully negotiated.