Many Utah drivers are surprised to learn that vehicles that have been in a crash may be worth less on the market, regardless of how well they’ve been repaired. This loss in value is called “diminished value,” and recovering this loss often involves a special insurance process known as a diminished value claim in Utah.

Craig Swapp & Associates’ Utah auto accident attorney, Paul Childs, responded to a question from someone about a diminished value claim on their vehicle, which the at-fault driver’s insurance company was refusing to pay. 

Here’s Attorney Paul Child’s reply:

“Diminished value claims in Utah are valid, but you must be careful about how you proceed. 

First, they only apply in situations where the vehicle is repairable. They do not apply in a total loss claim. 

Next, you must actually have the vehicle damage repaired by a quality repair facility. You do not want to have any substandard repairs contributing to the diminished value. 

Finally, you must actually suffer the loss. That is, you must actually sell or trade in the vehicle and suffer the diminished value over what you would have received for the vehicle had the damage never occurred. Otherwise, your diminished value claim is speculative. 

It is possible that you may never suffer any loss of value if you keep the vehicle long enough that its natural depreciation catches up to the value, or you may be able to sell it to a buyer who pays full value. 

Now, if there is an injury claim associated with the accident, you may not handle them separately by filing a lawsuit on either of them without including the other. You may not file a small claims action for the diminished value claim, for example, without including your bodily injury claim. If you do so, you forfeit the claims that you do not bring at the same time. 

Please let me know if you have further questions. I’d be happy to help.”

Utah as a Diminished Value State 

Utah is recognized as a “diminished value state,” which means drivers have the legal right to seek compensation for the lost market value of their vehicle after an accident caused by someone else’s negligence. 

Even with quality repairs, vehicles with a prior accident history often appraise for less than similar vehicles with a clean record. This is because most buyers are hesitant to pay full price for a vehicle that has been involved in a crash, regardless of how minor the damage may have been.

A diminished value claim in Utah allows vehicle owners to recover the difference between the pre-accident market value and the value after repairs. This process ensures you are not left to shoulder the financial burden of a vehicle’s lower fair market value after an accident that was not your fault.

Difference Between Diminished Value and Total Loss 

Note that there’s a complete difference between diminished value and a total loss when dealing with insurance claims after a crash in Utah. 

A total loss occurs when the cost of repairs exceeds the value of the vehicle itself. In these cases, insurance typically pays the fair market value of the car before the accident, and the vehicle is not repaired but instead written off.

In contrast, as stated by Attorney Paul Child, diminished value applies when the vehicle can be repaired, but its resale value decreases due to its accident history. The auto insurance diminished value claim covers the reduction in value, not the repair costs, helping you recover what is lost beyond the visible damage. In Utah, most insurance policies do not automatically pay for diminished value; you usually need to file a separate diminution claim with the at-fault driver’s insurer.

When to File a Diminished Value Claim in Utah

Timing matters when pursuing a diminished value claim in Utah – within 3 years. 

The best time to file is after your vehicle has been completely repaired and you have received documentation of all work completed. You should obtain a current professional appraisal or documentation that shows the car’s post-repair value. 

Next, compare this with the pre-accident fair market value.

Utah law generally allows drivers to pursue a diminished value claim if the following apply:

  • Another driver was at fault for the accident.
  • The accident took place in Utah.
  • The vehicle was repaired but is now appraised for less.
  • The diminished value is backed by a professional appraisal or market evaluation.

Insurance companies may dispute the amount of loss, which is why strong documentation is crucial. Note that auto insurance claims should be filed promptly since delays can affect both the evidence and your eligibility.

How to Make a Utah Auto Insurance Claim for Diminished Value 

Successfully filing an auto insurance claim for diminished value of a vehicle after an accident involves several important steps:

  • Obtain Repair Records and Pre-Accident Value: Gather repair invoices and any documents showing your car’s value before the accident. This can include recent appraisals, dealer quotes, or official guides like Kelley Blue Book.
  • Get a Post-Repair Appraisal: Hire a qualified appraiser who understands Utah’s auto insurance diminished value claim process. Their report should clearly state the diminished value and the methodology used to determine it.
  • Contact the At-Fault Driver’s Insurer: Present your documentation and submit a written demand for compensation for the diminution in value. It’s important to use precise, well-supported figures, as insurers often challenge these claims.
  • Negotiate or Dispute: Insurers may offer a lower amount than requested or deny the claim. Be prepared to negotiate or provide additional evidence, such as comparable vehicle sales data.

If negotiations stall or your claim is unfairly denied, a consultation with an auto accident attorney can help level the playing field and ensure your rights are protected.

When to Hire an Auto Accident Lawyer in Utah

While some straightforward diminished value claims may be resolved without legal help, many cases become contentious, especially if the insurer disputes liability or the amount of loss. 

Hiring a Utah auto accident attorney becomes critical if:

  • The insurer denies your diminished value claim or offers a minimal settlement.
  • There is a dispute over who caused the accident.
  • You’re unsure how to document or value your claim.
  • You face pushback during negotiations, or the process feels overwhelming.

Attorneys can handle communications with the insurance company, gather strong supporting evidence, and negotiate aggressively for a fair settlement. The right legal help can make a substantial difference in how much you ultimately recover for your loss.

What to Do if the Insurance Company Denies Your Claim in Utah

If your insurance company refuses to pay or denies your diminished value claim in Utah, it’s important not to give up. 

First, request a written explanation from the insurer detailing why your auto insurance claim for diminished value of a vehicle after an accident was denied. Review their reasoning carefully; sometimes claims are denied due to insufficient documentation or missed deadlines. In many cases, providing additional evidence such as repair records, independent appraisals, or market value comparisons can help strengthen your claim.

Next, consider filing an appeal directly with the insurance company. This involves submitting a formal letter and any new supporting documents that address the reasons for denial. If the insurer still refuses to reconsider, you have the right to escalate your case by filing a complaint with the Utah Insurance Department.

When your own efforts are unsuccessful or if you feel the insurer is acting in bad faith, it’s wise to seek legal guidance. An auto accident attorney in Utah can evaluate your case, negotiate with the insurance company on your behalf, and, if necessary, file a lawsuit to pursue the compensation you deserve. 

If you’re dealing with the consequences of an auto accident and concerned about the diminished value of your vehicle, you don’t have to face the insurance company alone. Craig Swapp & Associates has the experience and dedication to help Utah drivers recover what they’re owed. 

Call us today at (866) 936-3806 or fill out our online contact form to schedule a free consultation to discuss your diminished value claim in Utah and explore your best options for financial recovery.

Written By: Ryan Swapp     Legal Review By: Craig Swapp