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Diminished Value Claim in Indiana

Indiana lets you recover residual lost value from the at-fault driver if you prove the value after repair, but your own insurer does not owe it.

File a claim with the other driver's insurer
Yes
File a claim on your own policy
No, courts ruled
Time limit to sue for car damage
2 years
Your share of the blame
Modified comparative, 51% bar
Minimum coverage for property damage
$25,000

A recent appeals ruling gives a diminished value claim in Indiana a clear base against the driver who caused the wreck. The same ruling also tells you what proof to bring.

The Shield Global Case from 2020

In Shield Global Partners v. Forster, the Indiana Court of Appeals spoke directly to third-party claims. The owner may recover both the cost of repair and the residual lost value, as the MWL survey of all 50 states sums it up. Residual means the drop that remains after a proper fix.

There is a catch. The same summary says evidence of the fair market value after repairs is required. A repair bill alone will not do it. You need a figure for the car as it stands today, which is what a diminished value appraisal supplies.

Allgood Shut Out Claims on Your Own Policy

The Indiana Supreme Court went the other way for first-party claims in Allgood v. Meridian, decided in 2005. The policy there paid for repair or cash value. Under that kind of promise, the insured of an auto policy cannot recover lost value. So point your claim at the other driver's insurer.

Two Years and the Fault Line

Suits for injury to personal property must start within two years under Ind. Code § 34-11-2-4. Two years goes fast when an adjuster asks for one more document at a time.

Indiana also weighs your own conduct. Ind. Code § 34-51-2-6 shuts you out once your fault exceeds the combined fault of everyone else who caused the harm. Short of that, a jury lowers the award to match your share.

Policy Limits and the Small Claims Docket

The Indiana BMV lists $25,000 for damage to property in one accident as the required minimum. Repair and lost value both come out of that amount.

The small claims docket takes cases up to $10,000 under Ind. Code § 33-28-3-4. If the insurer will not deal fairly, file with the Indiana Department of Insurance. Compare the rules in Kentucky to the south.

Get your Indiana number with the diminished value calculator, or compare Indiana with every other state.

Had a crash in Indiana? Talk to someone who handles diminished value claims there.

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