Massachusetts courts accept lost value as real harm, yet a diminished value claim in Massachusetts often stalls at the insurance company. The reason is the standard auto policy, not the law of damages.
McGilloway Said the Loss Counts
In McGilloway v. Safety Insurance Company, decided in 2021, the Supreme Judicial Court treated lost value as part of what a careless driver owes. The Matthiesen, Wickert & Lehrer survey sums it up. Third-party tort damages for lost value are recoverable.
That is a rule about the driver. It does not say who pays the bill.
Cubberley Closed the Insurer's Wallet
Four years later the same court decided Cubberley v. Commerce Insurance. It held that McGilloway does not force every insurer to cover these claims no matter what the policy says. Then it read the 2016 standard policy. As Insurance Journal reported, that form excludes any decreased value or intangible loss, unlike the 2008 version.
So the at-fault driver's insurer can refuse the value part of your claim when the driver has the 2016 form. The driver still owes it. The court also said the people who sued had to win a judgment against the insured driver first.
Your Own Policy Pays for Repairs
Collision coverage is no better. In Given v. Commerce Insurance, from 2003, and in a case called Roth, courts found lost value is not covered. The Division of Insurance said the same in a May 2002 advisory opinion. Plan on your own company paying for the repair and nothing more.
Deadlines, Fault and Small Claims
You get three years from the day the claim arises to bring a tort suit, under chapter 260, section 2A. Shared fault does not end it. Under chapter 231, section 85, you still collect as long as your negligence does not exceed the other side's.
Since July 1, 2025, drivers must buy at least $30,000 in property damage liability. Under the 2016 form, none of it pays for lost value.
Suing the driver yourself is often the only path, and the court system helps here. Small claims court handles disputes of $7,000 or less. For property damage from a car accident, the award may exceed $7,000. Bring a written appraisal as your proof. If an insurer mishandles any part of the claim, write to the Division of Insurance Consumer Service Unit.