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Last Modified on Nov 06, 2025
As a result of a car accident in Texas, you may suffer from a personal injury or a total loss of your vehicle due to damage. In Texas, the driver who caused the accident is liable for damages caused by the car wreck. In certain cases, there are grounds to file for a diminished value claim as well. What is a diminished value claim in Texas?
A diminished value claim helps you recover the lost market value of your vehicle after an accident. After the stress of being in an accident, you shouldn’t have to worry about losing money when you choose to sell your car. Our legal team at Renick Law Firm, PLLC, can review your accident case today and determine whether there are grounds to file a diminished value claim.
How to File a Diminished Value Claim in Texas
In Texas, drivers are only required to carry a minimum of $25,000 worth of coverage for property damage. With the cost of parts, labor, and vehicles increasing every year, it is easy to have damage exceed that $25,000 threshold. If the car accident was not your fault, you can hire an insurance claim lawyer to help assess whether you can seek a diminished value from the at-fault’s insurance company.
Under Texas law, you have two years from the date of the accident to file a diminished value claim against the at-fault driver’s insurance company. In order to be able to file a claim in Texas:
- You must own the vehicle or be financing it (it cannot be leased).
- The vehicle must not have a history of prior accidents.
- The vehicle must have lost resale value (must be a specific amount).
- You must not be at fault for the accident.
- The insurance company must allow for such a claim.
- The other driver must be responsible for the accident and not have enough coverage to cover the cost of the diminished value.
Our team at Renick Law Firm, PLLC, will assist you with gathering documentation and supporting evidence for your car’s lost value. This involves keeping a log of all repair and maintenance records following the accident and having the vehicle assessed for its value post-accident. It is important not to leave money on the table, according to Consumer Affairs, non-lethal accidents cost around $162,000 in damages.
Types of Diminished Value Claims
There are three main types of diminished value claims, based on how and when the loss in value occurred. Inherent diminished value is the loss in resale value that remains after your vehicle has been properly repaired. This is often caused by the vehicle having an accident in its history or a rebuilt title.
The second type is immediate diminished value, which is the value after the accident and prior to repairs being done. The third type is repair-related diminished value, which is when the repairs lower the vehicle’s value. This can be caused by visible flaws in the bodywork or aftermarket parts.
Your lawyer will review the estimated repairs with you and the estimation of your car’s value to see which type of diminished value claim will work for you.
Why Choose Us?
At Renick Law Firm, PLLC, we understand the need to protect your earned assets and be able to move on with your life following an auto accident. Our firm is located in Beaumont, TX, and offers you a welcoming space to speak with our attorney, Scott Renick, comfortably about your goals. I will review your case with you and advise on what claim should be filed to allow you to regain the financial standing you had prior to this traumatic event.
FAQs
What Does a Diminished Value Claim Mean?
After a car accident, your insurance company or the company of the driver responsible will offer to cover the cost of repairs. This should cover the cost of all the property damage done to your vehicle, but in most cases, that isn’t true. After being involved in an accident, many vehicles lose significant value even after repairs are done. Diminished value claims help victims recoup this difference in the value of their care pre- and post-accident.
Do You Need an Attorney to File a Diminished Values Claim in Texas?
You are not required to have an attorney to file a diminished value claim in Texas, but it is highly recommended. A diminished value claim can result in thousands of dollars added to your insurance settlement following an accident, but proving this claim can be challenging. An insurance claim lawyer can make the process easier for you and result in higher settlements from insurance companies.
How Much Can You Get From a Diminished Value Claim?
A diminished value claim is calculated as a portion of your car’s value prior to the accident. This can vary significantly depending on the damage caused to your vehicle. If your vehicle has higher mileage, it can result in a lower payout as it depreciates the overall value of your car. Your lawyer will be able to help you determine if a diminished value claim is worth filing and what your estimated settlement may be.
Can Your Insurance Company Deny Your Diminished Value Claim?
If an insurance company denied your diminished value claim, you can appeal the decision, file a claim against the driver responsible, or negotiate a settlement. Your attorney will request a written explanation for the denial and provide supporting evidence to appeal the denial. If they choose to uphold the denial, you can then go through small claims court to recoup the value lost.
Hire an Insurance Claim Lawyer
The team at Renick Law Firm, PLLC, is ready to review your claim with you. We have a proven track record of providing compassionate care to our clients, resulting in large settlements. With over 60 Google reviews and 4.9 stars, our team prides itself on excellence and getting you what you need to move forward with your life. If you or your loved one has suffered following a car accident, call our office today.
