The short answer: Yes. Florida law entitles you to recover the loss in your vehicle’s market value caused by an accident — even after your car has been fully repaired. But there’s a catch: your insurance company almost certainly won’t tell you about it. And if you don’t pursue it, you’ll leave that money on the table permanently.
This article explains exactly how diminished value works in Florida, who is required to pay, how much you may be owed, and what steps you need to take to recover it.
Key Takeaway Under Florida law, the at-fault driver’s insurance company may compensate you for your vehicle’s diminished value. This is a legal right, and it applies even if your car looks perfect after repairs.
What Is Diminished Value?
Diminished value is the difference between what your vehicle was worth before an accident and what it’s worth after it has been repaired. Even a flawless repair job cannot undo the accident history that now follows your vehicle on every Vehicle History Report, like Carfax and AutoCheck.
When a potential buyer sees that your car was in a collision, they will likely offer less — often significantly less. That financial loss is real, it’s quantifiable, and in Florida, it may be recoverable.
Example: Your 2024 BMW X5 was worth $87,000 before a rear-end collision. After $12,000 in repairs, it looks perfect — but its market value has dropped to $77,000 because it now has an accident record. That $10,000 difference is your diminished value claim.
The Three Types of Diminished Value
Florida courts and appraisers generally recognize three forms:
- Inherent Diminished Value — The most common type. This is the loss in resale value caused simply by having an accident on record, regardless of how well the car was repaired.
- Immediate Diminished Value — The drop in value between the moment of the accident and before any repairs are made. Rarely claimed separately.
- Repair-Related Diminished Value — Additional loss caused by substandard repairs: mismatched paint, discontinued original parts, structural issues that weren’t fully corrected.
In most Florida claims, inherent diminished value is what you’ll be pursuing.
Florida Law: What Does It Actually Say?
While Florida doesn’t have a single statute with the words “diminished value,” the legal basis is well-established. Florida courts have consistently held that accident victims are entitled to be made whole — and that includes recovering the loss in market value of their property.
Florida operates under a comparative fault system, which means the at-fault driver’s insurer bears the financial responsibility for the damage they caused — including diminished value.
Important: Diminished value is almost always a third-party claim — meaning you file it against the at-fault driver’s insurance, not your own. Your own insurer generally does not cover diminished value unless you have rare Uninsured Motorist Property Damage (UMPD) coverage.
Who Can File a Diminished Value Claim in Florida?
Not every accident qualifies. To be eligible, you generally must meet all of the following conditions:
- You were not at fault (or only partially at fault) for the accident
- The other driver was adequately insured with property damage liability coverage
- Your vehicle was repaired — not declared a total loss
- You own or finance the vehicle (leased vehicles typically do not qualify)
- Your vehicle has suffered a measurable drop in market value
If you were partially at fault, Florida’s comparative fault rules may reduce your recovery proportionally — but you are not necessarily barred from recovering anything.
How Much Can You Recover?
Diminished value varies based on several factors including, but not limited to the following:
| Factor | Effect on Claim Value |
|---|---|
| Vehicle age | Newer vehicles lose more; diminished value drops off on older vehicles |
| Pre-accident value | Higher-value vehicles (luxury, exotic, collector) have larger claims |
| Severity of damage | Frame damage, airbag deployment, and major structural work increase the loss |
| Make and model | Luxury and exotic brands depreciate more sharply after an accident history |
| Mileage | Lower mileage vehicles generally sustain higher diminished value |
| Quality of repairs | Poor repairs compound diminished value further |
Across Florida diminished value cases, vehicles can lose anywhere from 10% to 50% of their pre-accident market value. For a $40,000 vehicle, that’s a potential recovery of $4,000 to $20,000.
What Insurance Companies Won’t Tell You
Here’s the uncomfortable truth: insurance companies are not required to proactively inform you of your right to claim diminished value. In fact, their financial incentive runs in the opposite direction.
When you do file a claim, expect the insurer to push back with tactics including:
- Claiming your vehicle has “no diminished value” because repairs were high quality
- Using the 17c formula — an industry method widely criticized for systematically undervaluing claims
- Sending their own appraiser, whose estimate will almost always be lower than an independent appraisal
- Delaying the claim, hoping you’ll give up or accept a lowball offer
- Arguing that your vehicle’s age or mileage eliminates any diminished value
⚠️ The 17c Formula Problem
Many insurers calculate diminished value using the “17c” method — a formula originally created for a single case in Georgia that caps claims at a fraction of actual loss. Courts across the country, including in Florida, have questioned its validity. An independent appraisal is almost always more accurate and more favorable to you.
The Step-by-Step Process to File a Claim in Florida
Step 1: Wait Until Repairs Are Complete
You should not file a diminished value claim until all repairs to your vehicle are finished. The post-repair state of your vehicle is what the appraisal will be based on.
Step 2: Gather Your Documentation
Collect everything: the accident report, all repair invoices and work orders, photos of the damage (before and after repairs), your claim number with the at-fault driver’s insurer, and any notes about structural or frame damage.
Step 3: Establish Pre-Accident Value
Use tools like Kelley Blue Book (KBB) and NADA Guides to document your car’s pre-accident market value. Include any premium packages, upgrades, or features that increased the vehicle’s worth.
Step 4: You May Need to Get an Independent Appraisal
You may need to hire a qualified, independent vehicle appraiser to assess the post-repair value of your vehicle. Their formal report is the backbone of your claim. This is not the same as the insurance company’s appraiser — you may need your own.
Step 5: Submit a Written Demand
Send a formal demand letter to the at-fault driver’s insurance company. This should include your appraisal report, pre- and post-accident values, all repair documentation, photos, and the specific dollar amount you are claiming.
Step 6: Negotiate — With Legal Leverage
The insurer will likely counter with a lower offer. This is where having an attorney makes a critical difference. Because appraisers cannot take a case to court, insurance companies know they can lowball appraisers. When an attorney is involved, there’s always the possibility of litigation — and that changes the negotiation entirely.
Why an Attorney Makes a Measurable Difference
You can technically file a diminished value claim without a lawyer. But here’s the reality:
- Insurance adjusters are professional negotiators trained to minimize payouts
- Appraisers cannot represent you in court — attorneys can
- The threat of litigation is often the single most effective tool in a negotiation
- An attorney knows how to counter the 17c formula and other undervaluation tactics
- At Lost Value Law, we work on a contingency basis — no fee unless you win
Many clients who attempted to settle on their own before calling us received a fraction of what they ultimately recovered with legal representation.
Was Your Car’s Value Reduced After an Accident?
You may be entitled to thousands in recovery. At Lost Value Law, P.A., we handle diminished value and loss of use claims throughout Florida — with no fee unless you win. Get Your Free Case Evaluation →
Or call us directly: (954) 860-0079
Don’t Forget: Loss of Use Compensation
In addition to diminished value, Florida drivers may also recover for loss of use — compensation for the time your vehicle was unavailable during repairs, whether or not you rented a replacement vehicle.
- Standard vehicles: typically $30–$60 per day
- Luxury vehicles: $2,000–$4,000 per week
- Exotic or collector vehicles: potentially higher, based on comparable rental rates
Loss of use is calculated by multiplying the number of days your vehicle was in the shop by the daily rental cost of a comparable vehicle. Your attorney can include both diminished value and loss of use in the same demand package to maximize your total recovery.
How Long Do You Have to File? (Statute of Limitations)
In Florida, you have two years from the date of the accident to file a diminished value claim. While two years may seem like plenty of time, waiting is a mistake:
- Evidence degrades — photos, witness memories, and repair documentation become harder to obtain
- Vehicle value changes over time, complicating the appraisal
- Insurance companies use delay as a negotiating tactic
The best time to pursue your claim is as soon as repairs are complete.
Frequently Asked Questions
Can I still file if I already settled my bodily injury claim?
Possibly — it depends on the specific language of your settlement agreement. Some agreements release all claims, including property damage. This is why it’s critical to consult a diminished value attorney before signing any settlement with the insurance company.
What if the other driver’s insurance coverage isn’t enough?
If the at-fault driver is underinsured, you may have options through your own uninsured/underinsured motorist coverage. An attorney can review your policy and identify every avenue of recovery available to you.
My car is older — do I still have a claim?
Older vehicles can still have valid diminished value claims, particularly if they were well-maintained, had low mileage, or were high-value models. It may still be worth pursuing — especially with frame damage or significant structural repair.
Can I file a diminished value claim for a leased vehicle?
Generally, no. In Florida, diminished value claims are typically available only to vehicle owners and those who are financing a purchase. If you lease, the vehicle legally belongs to the lessor, not you.
What if I was partially at fault?
If you were partially at fault, your recovery may be reduced proportionally. For example, if you were 20% at fault, your diminished value recovery would be reduced by 20%. You are generally barred from recovering if you were more than 50% at fault.
Summary: Your Florida Diminished Value Rights at a Glance
| Question | Answer |
|---|---|
| Can I pursue diminished value on a leased vehicle? | No, you must be the vehicle owner (purchased or financed) |
| Which insurer do I claim against? | The at-fault driver’s insurance (third-party claim) |
| What if I already have an injury case? | We still may be able to help you. Many of our clients are already represented for bodily injury. |
| Statute of limitations | 2 years from the accident date |
| Do I need a lawyer? | Not required, but strongly recommended |
| Attorney fees at Lost Value Law | No fee unless you win |
| Can I combine with loss of use? | Yes — both can be in the same demand |
The Bottom Line
If you were in a Florida car accident that was not your fault, and your vehicle was repaired — not totaled — you likely have a valid diminished value claim. The at-fault driver’s insurance company may be legally required to compensate you for the drop in your vehicle’s market value. But they won’t bring it up, and they’ll fight it if you do.
The smartest move you can make is to speak with a dedicated diminished value attorney before you sign anything or accept any settlement. At Lost Value Law, P.A., this is all we do — and we don’t get paid unless you do.
Ready to Find Out What Your Claim Is Worth?
Attorney James M. Rosenberg provides free evaluations for diminished value and loss of use claims throughout Florida. No obligation, no hourly fees, no fee unless you win. Start Your Free Evaluation →
(954) 860-0079 | info@lostvaluelaw.com
Nothing in this article constitutes legal advice or creates an attorney-client relationship. This content is for general informational purposes only. Results may vary. Consult with a licensed Florida attorney to discuss the specifics of your situation.
James M. Rosenberg, Esq.
Managing Partner, Lost Value Law, P.A.
Diminished Value & Loss of Use Attorney | Florida
Learn More About James →
