What Are the Laws Surrounding Diminished Value in Texas? | Northside Collision
If your vehicle has been in a collision, you may already know that its resale value can drop even after high-quality repairs. In Texas, state law gives you the right to pursue compensation for that loss, but understanding how and when to file is key. Our blog post breaks down the essential laws and requirements around diminished value claims in Texas so you can protect your financial interests.
What Texas Law Says
In Texas, the law allows you to file a diminished value claim if someone else caused the accident. This is considered a third-party claim, meaning you’re seeking compensation from the at-fault driver’s insurance company.
Texas courts have consistently supported a car owner's right to collect diminished value in these situations. However, if you were at fault or are filing under your own insurance policy, your ability to recover diminished value will depend on the specific language in your policy. Most first-party insurance policies do not include diminished value coverage.
When and How to File a Diminished Value Claim
To file a valid diminished value claim in Texas, timing and documentation matter. You have two years from the date of the accident to file a claim, as outlined in the Texas statute of limitations for property damage.
What You’ll Need to Support Your Claim:
- Proof of the vehicle’s pre-accident market value
- Repair documentation and receipts
- A professional diminished value appraisal
- Details of the accident and the at-fault driver’s insurance
Having strong documentation, especially an independent appraisal, increases your chances of receiving a fair settlement.
How Insurance Companies Respond to Diminished Value Claims
Most insurance providers do not openly advertise that you can file for diminished value. In many cases, they will only respond if you file a formal, written request.
Even when a claim is filed, insurance adjusters may challenge the amount or use internal formulas to reduce the payout. That’s why working with a professional appraiser who understands how to value post-repair losses is so important. It gives you a solid foundation for negotiating or pursuing further legal action if needed.
Why a Professional Diminished Value Appraisal Matters
Insurance companies often rely on their own metrics to calculate diminished value. These figures are usually conservative and not reflective of real-world losses. A third-party appraisal provides an unbiased estimate of what your vehicle is truly worth after repairs.
At Northside Collision, our team specializes in writing accurate, legally accepted appraisals that can be used to file or support a diminished value claim. We assess the damage, vehicle history, and current market trends to present an informed and realistic estimate of value loss.
Common Myths About Diminished Value in Texas
Some drivers hesitate to file a claim because of misinformation. Here are a few myths to be aware of:
1. You must sell the car to collect diminished value
False. You can file a claim even if you plan to keep the vehicle.
2. Only newer or luxury vehicles qualify
False. Any car that has lost market value after repairs may qualify, regardless of age or brand.
3. You can't file if the car is already repaired
False. In fact, you need the repair documentation to support your claim.
How Northside Collision Helps You Navigate Texas Diminished Value Claims
We know the process can feel overwhelming. That’s why Northside Collision offers comprehensive support, from writing your diminished value appraisal to helping you understand what next steps to take with your insurance company. Our team has experience working with both vehicle owners and legal professionals, ensuring your claim is backed by clear and accurate documentation.
Get Help from Our Diminished Value Appraisal Team in San Antonio
If your vehicle has suffered a loss in market value after an accident, you may be legally entitled to compensation under Texas law. By understanding your rights and working with a trusted diminished value appraisal in San Antonio, TX, you can protect your investment and recover what your vehicle is truly worth. Contact us to get started on your claim today.
