Diminished Value Claim: Arizona

Summary – Diminished Value Claims in Arizona

Statute of Limitations: 2 years from the date of loss

Third-Party Diminished Value Claim: Yes

First-Party Diminished Value Claim: No, if you caused the accident, you aren’t eligible.

AZ Property Damage Minimum Limits: $15,000 in coverage

Uninsured Motorist Coverage for Diminished Value: No, this coverage is not offered in Arizona.

Underinsured Motorist Coverage for Diminished Value:  No

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Diminished Value in Arizona: Explained

‍Any time a vehicle is in an accident, it loses a significant portion of its value. Repairs can certainly restore some of those losses, but not all of them. For example, let’s assume that your vehicle was valued at $40,000 before you were the victim of an accident.

Following the repairs, however, your vehicle is valued at only $32,000 because it now has an accident in its history. Therefore, your diminished value is $8,000.

As you can imagine, this leaves you with more problems to worry about than just the cost of repairs. Most buyers are reluctant to purchase a vehicle that’s been in an accident, regardless of how well it was repaired.

Speaking of repairs, no matter how nice your repaired vehicle looks, buyers who do a car history lookup will be less likely to buy from you. Not only can this result in low-ball offers from private buyers, but car dealers will also be less likely to give you what your vehicle is worth.

This situation can leave you taking a loss on your previously damaged vehicle, even when an accident was no fault of your own.

Wouldn’t you like to get back the diminished value of your vehicle? As long as you weren’t the at-fault driver, you can! Even if you’ve already had repairs completed on your vehicle, filing a diminished value claim can help you recoup your losses.

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How to File a Diminished Value Claim in Arizona

The best way for you to prove your diminished value claim is to hire a highly qualified, licensed, and independent diminished value expert — one who has considerable experience and has appraised thousands of vehicles just like yours.

That’s where we come in. When you hire DVCHECK, you can rest assured that you will get an accurate rendering of your vehicle’s value backed up with factual market data.

Many diminished value appraisers simply input a few numbers into a software program and call it a day. We go above and beyond to ensure that nothing is overlooked. A concise appraisal report featuring essential details can help maximize your diminished value claim in Arizona, potentially getting you the highest return.

Sometimes, the third party’s insurance company will make a low offer to control claim payouts. We work hard to make sure this doesn’t happen. When you have an accomplished expert by your side, they know how to counter the insurance company’s statements and work toward getting what you deserve.

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Calculating Diminished Value in Arizona

An often critical aspect of any diminished value claim in Arizona is knowing its worth. Some insurance providers utilize mileage and damage-modifier-driven formulas like the 17c, but these often serve little more than to undervalue your diminished value claim. There is also no officially endorsed specific formula for calculating diminished value in Arizona.

To accurately determine your car’s diminished value, consider consulting a professional appraiser. Our licensed appraisers can provide you with a detailed assessment of how much your car is worth after bodywork or repairs by comparing it to similar vehicles with a comparable accident history.

This approach is much more reliable because it takes into account many factors that formulas do not — your vehicle’s class, the type of damage, and the automobile’s current market value with an accident history, ensuring a fair, accurate estimate.

While insurance companies may offer their own calculations, remember that these are often designed to minimize payouts. By hiring a third-party appraiser with no insurance company affiliations, you can strengthen your claim with expert documentation, potentially leading to a more favorable outcome.

If you need more assistance understanding diminished value calculators in Arizona, contact DVCHECK.

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Arizona Diminished Value Law

Farmers Ins. Co. of Arizona v. R.B.L. Inv. Co., 138 Ariz. 562, 564, 675 P.2d 1381, 1383 (Ariz. Ct. App. 1983)

Courts agree with jurisdictions that have generally held the measure of compensation to the owner of a negligently damaged motor vehicle may include the cost of repair and proven residual diminution in fair market value.

Oliver v. Henry, 613 Ariz. Adv. Rep. 31 (App. Div. I, July 28, 2011) (J.Winthrop)

Court of Appeals of Arizona, Division 1, Department E. Paul OLIVER, Plaintiff/Appellee, v. James HENRY, Defendant/Appellant. No. 1 CA–CV 10–0701. Decided: July 28, 2011

The Arizona Court of Appeals affirmed, noting that the “measure of damages for injury to personal property when it is not destroyed is the difference in the value of the property immediately before and immediately after the injury.” When the property is repaired, the measure of damages includes not only the cost of repair but “allowance for any difference between the value of the property before the damages and the value after the repairs as well as the loss of use.”

Public policy does not support the idea that a victim should be required to sell their vehicle to establish a diminished value claim in Arizona and to prove the amount of the loss.

Further, a vehicle’s sales price may not represent its market value, and expert appraisal would likely still need to be utilized to establish a vehicle’s pre-loss value.

We conclude that Arizona law does not require the sale or transfer of a damaged vehicle to establish a claim for diminution in value or to prove the amount of the loss in value. In this case, Oliver’s loss occurred the moment the vehicle was damaged, and even though it was repaired to industry standards, it could still have diminished value.

Oliver was not required to sell, exchange, or otherwise dispose of his damaged and subsequently repaired Jeep Wrangler to demonstrate an actual and provable loss in value; instead, the loss could be established through other competent means, such as expert appraisal of the pre-loss and post-repair values. 

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Arizona Diminished Value Claims and Getting Full Compensation

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Not all states are diminished value states. Fortunately, Arizona is, meaning you have the legal right to recover the diminished value of your vehicle. The only exceptions are you must not have been the at-fault driver, and you haven’t signed a release of all claims.

If you are ready to proceed with your diminished value claim in Arizona, we encourage you to contact DVCHECK today. Insurance companies are known for having strict requirements in the documentation needed and may push back against your claim.

Fortunately, you have a helping hand to assist with this. With a qualified appraiser in your corner and a credible diminished value appraisal, your claim will have the authority needed to improve your chances of getting the full amount of your diminished value.

Don’t delay in getting the compensation you deserve. Call DVCHECK to get your free estimate or help with diminished value calculations in Arizona!

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