Detailed answer — what diminished value is and the Illinois process

What “diminished value” means

Diminished value is the reduction in a vehicle’s market value after it has been damaged and repaired. Even when repairs restore function and appearance, buyers commonly pay less for a vehicle that has an accident history. Illinois law does not create a unique diminished-value statute, but you can pursue diminished value as part of a property-damage claim against the at-fault party or that party’s insurer.

Who can make a diminished value claim in Illinois?

The vehicle owner (or a lienholder if the lienholder’s interest is affected) may claim diminished value when another person’s negligence or wrongdoing caused the damage. If you were at fault for the crash, your own insurer may pay diminished value only if your policy or state law and policy terms allow it.

Step-by-step process to get a diminished value quote

1. Preserve evidence at the scene and right after repairs. Take dated photos of damage, get a copy of the police report (if any), and keep all repair invoices and parts receipts. Document mileage, VIN, and any pre-accident maintenance records you have.
2. Get a detailed repair estimate and final repair invoice. The repair shop’s written estimate and the final invoice showing replaced parts and work performed are essential. They show what was fixed and how.
3. Establish the car’s pre-accident market value. Collect comparable listings, dealer trade-in quotes, private-sale listings for similar vehicles (same year, make, model, mileage, equipment, and geographic area) dated before the crash. This shows the value before the damage.
4. Obtain a diminished value appraisal from an independent appraiser. Hire a qualified diminished-value appraiser or vehicle appraiser who uses market-based methods. A professional will compare pre-loss value to post-repair market value and produce a written report you can send to the at-fault party’s insurer. Independent appraisals typically carry more weight than an insurer’s internal formula.
5. Compare insurer methods and internal formulas. Insurers often use quick formulas (sometimes called insurer “formulas” or internal methods) that lead to much lower values than a market-based appraisal. You are not required to accept those numbers; you can present your independent appraisal and supporting comparables.
6. Send a written demand to the at-fault party’s insurer. Include the repair invoice, photos, pre-loss comparables, the independent diminished value appraisal, and any other supporting documents. Make a clear numeric demand and set a reasonable deadline for response.
7. Negotiate or escalate. Be prepared to negotiate. If the insurer refuses to pay a reasonable amount, you can consider small-claims court or civil suit, or retain an attorney to pursue the claim on a contingency basis in more complex matters.
8. File a complaint with the Illinois Department of Insurance if needed. If the insurer’s handling violates fair-claims treatment, you may contact the Illinois Department of Insurance for guidance: insurance.illinois.gov.

Common valuation methods and what to expect

Appraisers commonly use these approaches:

• Market-based appraisal: Compares recent sales/listings of comparable vehicles and accounts for the accident history effect. This is generally the most persuasive to buyers and courts.
• Cost-based approach: Looks at repair costs but does not directly translate to market loss; this approach often underestimates true diminished value.
• Insurer formulas: Some insurers use automated or proprietary formulas that yield low values. You can counter those with a market-based appraisal.

Timing and statute of limitations

Act promptly. Evidence gets harder to collect over time. Legal deadlines for property-damage claims vary; consult a lawyer or check Illinois civil procedure rules if you think the statute of limitations may be an issue. If you plan court action, start sooner rather than later to preserve evidence and witnesses.

When to hire an attorney

Consider an attorney if the insurer denies coverage, offers an unreasonably low settlement, or if the diminished value amount is large. Many consumer attorneys handle diminished value cases on contingency or in small-claims court. An attorney can evaluate legal options and the likely cost-benefit of litigation.

Resources

• Illinois Department of Insurance (consumer resources and complaint portal): https://insurance.illinois.gov/
• Illinois General Assembly (laws and statutes): https://www.ilga.gov/

Important: This article explains typical practice and steps to get a diminished value quote in Illinois. It is not legal advice. If you need advice tailored to your situation, consult a licensed Illinois attorney.

Helpful Hints — quick checklist to get a strong diminished value quote

• Take clear before-and-after photos (multiple angles) and keep the original photos’ metadata or printouts showing date/time.
• Get at least one independent diminished value appraisal from a reputable appraiser experienced with insurance claims.
• Collect 3–5 comparable vehicle listings or recent sales from the local market dated before the crash.
• Keep all repair records, parts receipts, and communications with repair shops and insurers in one folder or digital file.
• Send written demands and keep copies of all correspondence. Use certified mail or email with read receipt when possible.
• If the at-fault insurer offers a very low amount, ask them for their valuation method in writing and request the data they used to calculate diminished value.
• Consider small-claims court for lower-value claims; it can be faster and less expensive than full litigation.
• If in doubt about deadlines or complex facts (leased vehicle, lienholder interest, or multiple at-fault parties), consult a licensed Illinois attorney promptly.

Disclaimer: This article is educational only and does not constitute legal advice. For advice about your specific situation, contact a licensed Illinois attorney.