The law behind a diminished value claim in Maryland is old and clear, but one rule can wipe it out. Maryland still uses contributory negligence, so your own share of fault is the first thing to check.
Contributory Negligence Comes First
Most states cut an award when both drivers share the blame. Maryland does not. The Justia 50-state survey says a driver who was partly careless will usually lose the case. It does not matter how small the share is.
So if the adjuster can pin even a small part of the crash on you, the whole claim may fail. Gather the police report, photos and the names of witnesses before you ask for money. Proof that you did nothing wrong is worth as much as proof of the loss.
Krause and Repairs Plus Value
Maryland courts took up lost value long ago. In Fred Frederick Motors v. Krause, from 1971, the court let an owner get the repair cost plus the value the car still lost. The Matthiesen, Wickert & Lehrer survey notes a limit. The two together cannot top the drop in value before the repairs.
A diminished value appraisal puts the before and after prices in writing.
Uninsured Motorist Coverage Must Include It
Your own collision coverage pays only if its words say so. One part of your policy is now settled. In Bulletin 24-8, dated April 12, 2024, the Maryland Insurance Administration took a firm stand. Your required uninsured and underinsured motorist coverage must pay for lost value.
This matters when the other driver carried no insurance or not enough. Your own policy then fills the gap, up to its limits. The same bulletin says Maryland case law treats lost value as a valid part of damages.
Three Years, Low Limits and Small Claims
Under Courts and Judicial Proceedings ยง 5-101, you have three years to file a civil action.
The state minimum for property damage liability is only $15,000, says the Motor Vehicle Administration. On a newer car, the repair bill alone can use up most of it.
District Court hears small claims of $5,000 or less. The rules there are simpler, which makes it easier to speak for yourself. If an insurer ignores your proof, file a complaint with the Maryland Insurance Administration.