What is diminished value?

Diminished value is the loss in a vehicle’s market value that remains after repairs following a crash. Even when repairs are done well, buyers often pay less for a vehicle that has an accident history. Appraisals estimate that loss so you can demand compensation from the at-fault driver’s insurer (or your own, depending on coverage).

Types of diminished value appraisals

• Inherent diminished value — value lost because the vehicle has a damage history.
• Repair-related diminished value — value lost because repairs were incomplete or low quality.
• Immediate diminished value — a quick market-based estimate of value loss right after the accident.

Step-by-step process to get an appraisal in Arizona

1. Document the vehicle and damage now.

   Take multiple high-quality photos of all damaged areas and the whole vehicle before repairs, if possible. Keep repair estimates, final repair invoices, parts receipts, rental car bills, and any communications with the insurer.

2. Order a vehicle history report.

   Get a Carfax or AutoCheck report that shows the accident entry once repairs are logged. Appraisers use this to show the vehicle now has a damage/accident record.

3. Find a qualified diminished value appraiser.

   Look for an independent appraiser or appraisal company that performs diminished value reports (often marketed as “diminished value appraisal” or “loss of value appraisal”). Ask about their methodology, sample reports, credentials, and experience in the Arizona market. Common useful credentials include professional appraisal association membership (look for sample reports rather than relying on a single credential).

4. Provide the appraiser with complete documentation.

   Give the appraiser: VIN, year/make/model/trim, mileage at time of accident, repair invoices (itemized), before/after photos, the vehicle history report, and market listings for comparable cars if you have them.

5. Appraiser completes inspection and report.

   The appraiser will inspect the repaired vehicle (in person or via high-quality photos), determine the pre-loss market value, and estimate post-repair market value using comparables and market data. The report should include methodology, comps, calculations, photos, and a final diminished value number.

6. Deliver the appraisal and demand to the insurer.

   Send the appraisal and a concise demand letter to the at-fault party’s insurer. Include the repair invoices, photos, vehicle history report, and a clear dollar amount with a deadline for response (often 14–21 days). Keep proof of delivery (email delivery/read receipt or certified mail).

7. Negotiate or escalate if needed.

   The insurer may accept, contest, or make a lower offer. Use the appraiser’s report and comps in negotiation. If the insurer denies diminished value, you can file a complaint with the Arizona Department of Insurance (link below) or pursue the claim in small claims court or civil court depending on the amount.

What a strong diminished value appraisal should include

• Clear identification: VIN, year, make, model, trim, mileage, location.
• High-quality photos of damage and final repaired condition.
• Pre-loss market value determination (with sources such as NADA, Kelley Blue Book, and local market comps).
• Post-repair market value estimate with comparable vehicles and listing links.
• Detailed explanation of methodology used (market-comparable analysis is preferred).
• Final diminished value calculation and signed appraiser statement.

How insurers commonly respond

Insurers may:

• Accept the appraisal and pay the amount.
• Provide a lower amount and enter negotiation.
• Reject the claim and argue there is no loss in market value or that repairs returned the vehicle to pre-loss condition.

If an insurer is uncooperative, you can file a consumer complaint with the Arizona Department of Insurance or consider small claims court or hiring an attorney for larger claims.

Arizona-specific resources

• Arizona Department of Insurance — file a complaint or read consumer guidance: https://insurance.az.gov/consumers/file-complaint
• Arizona Revised Statutes — insurance laws and rules (Title 20): https://www.azleg.gov/arsDetail/?title=20
• Arizona Revised Statutes — civil actions (limits and procedures): https://www.azleg.gov/arsDetail/?title=12

Note: statutes and administrative rules can affect deadlines and remedies. If you plan to sue, check relevant statutes of limitation and court procedures or consult an attorney.

Helpful Hints

• Begin documenting immediately — photos, repair invoices, and communication logs are crucial.
• Choose an independent appraiser who provides a full market-comparable report, not just a quick estimate.
• Ask for a sample report before you pay to be sure it contains comps and a clear methodology.
• Keep copies of everything you send to the insurer and get written responses whenever possible.
• Use the appraisal report as the basis for negotiation; be ready to explain how the comps support the number.
• If the insurer offers a low amount, request their basis in writing and respond with your appraiser’s analysis.
• If you need help with filings or court processes in Arizona, consider a consultation with an attorney experienced in vehicle/insurance claims.