Hey everyone! I was rear-ended on the freeway about a month ago by someone insured by State Farm. The other driver accepted full responsibility. I drive a 2022 Kia Telluride with less than 35k miles, and the repair estimate, including extra repairs, came to just under 22k. When I talked to my adjuster, she said diminished value is only for things they can’t fix or for aftermarket parts. Do I have a diminished value claim? My mom and I were in the car, and the other driver hit us going around 30 mph. They’re really pushing me to sign a release for their insured and have offered 2k for pain and suffering and 15k in medical coverage for 6 months.
You’ll have to prove the car has lost value. You can look up the Georgia formula as a starting point.
But remember, it’s a Kia. They’re not known for high resale value, and being a few years old, it’s already probably lost a lot of value.
What aftermarket parts aren’t they covering?
Diminished value claims aren’t only about not covering aftermarket items or using non-OEM parts. They usually apply to newer cars. It depends on your state and the insurance company.
Your car is from 2022 and has low miles, so you might have a case. But the key is proving that your car is now worth less because of the accident. Sales data for similar cars can help prove your claim. If this is the only accident on record, that works in your favor. If it’s had a few accidents, that will impact the claim.
@Leeland I don’t have any aftermarket parts on the car. The adjuster said diminished value is only for parts they couldn’t fix or aftermarket parts. I live in Idaho, but the accident happened in Utah. Should I hire one of those companies that collect all the data for you?
@LearnSome The adjuster isn’t wrong, but people don’t usually get much from a diminished value claim for aftermarket parts. The point of a diminished value claim is to show sales data that proves your car lost value after the repairs. For example, if your car was worth $30k before the accident but now cars with similar damage are selling for $24k, then you’ve lost $6k in value.
In your case, there’s no aftermarket stuff. You may have lost value. Should you hire a third-party appraiser? Maybe. Start by doing some research yourself. If you see a significant drop in value, it could be worth it. But if the drop is small, like $1k, and the appraiser charges $750, it may not be worth it.
In 20 days, your Kia will be 4 years old. You likely won’t get diminished value for a 4-year-old car, especially a Kia.
@Nevaeh Am I missing something or is my math off? I got the car in 2022 and it’s now 2024. Isn’t that just 2 years? I’m not much of a car person, so I could be wrong.
@LearnSome Car model years change every October 1st. So technically:
2022 = 1
2023 = 2
2024 = 3
2025 = 4
@LearnSome Got it! Thanks for explaining 
@LearnSome 2022 models were likely built in 2021.
@WilliamMia That’s true, but the vehicle age still moves forward on October 1st. 
I don’t understand why people are saying you don’t have a diminished value claim. I got $1,500 for my 8-year-old Honda Crosstour with 135k miles and $12k in damage. Your case might be valid, but it depends on the state’s rules.
The key is the state where the accident happened. State Farm may make you prove the diminished value. Utah law allows for diminished value recovery.
You can use a formula and submit that as proof. State Farm might accept it or challenge it. It depends on their adjuster.
Again, the laws of the state where the accident happened are what matter most.
@Callen Since you mentioned Utah:
In an auto damage case, you can recover not just the repair costs but also any depreciation in the car’s market value after repairs. See Metcalf v. Mellen, 192 P. 676 (Utah 1920).
You should be able to recover diminished value from the other driver’s insurance. Make sure not to sign any release forms until you’re happy with the full settlement. State Farm will want a full release for any payout. Make sure the release includes every part of your claim or clearly states what parts of the claim it covers.
Good luck!