A diminished value claim in Montana asks for the resale value a car loses after a crash, even when the repair is good. Montana courts have not said yes or no. The claim is open, and your proof carries it.
The Hop Case Left the Question Open
The leading case began with a nearly new sports car. In Hop v. Safeco Ins. Co. of Illinois, 261 P.3d 981 (Mont. 2011), Timothy Hop owned a 2006 Chevrolet Corvette with 4,000 miles on it. A driver insured by Safeco hit it. Damages came to about $8,222, and Safeco paid for the repairs. Hop wanted more.
He asked for residual diminished value. The court defined it as the value just before the crash minus the value after repairs. Hop sued for a whole class of drivers, and the Supreme Court ordered that class case dismissed without prejudice. It never decided whether insurers must pay. The Matthiesen, Wickert & Lehrer survey calls the issue an open question in Montana.
Settle or Win Before You Sue the Insurer
Hop also shows a trap. Montana's claims law lets a third party sue an insurer for unfair handling, but not right away. Under section 33-18-242(6)(b), as quoted in Hop, the underlying claim must first be settled or end in a judgment for you. So your first step is a plain damage claim against the at-fault driver, which that driver's insurer handles.
Build that claim with paper. A written diminished value appraisal gives the adjuster a figure based on local sales. Send it with a short demand letter and the repair invoice.
Your Own Policy and the Eby Case
Collision coverage on your own car is a separate matter, and the policy words decide it. In Eby v. Foremost Ins. Co. from 1962, the policy promised replacement. The court read that word to mean full restoration. A car is not fully restored, it said, if it is worth less after the repair. The same court warned that judges have differed on similar clauses. Read your policy before you ask your own company to pay.
Two Years, Fault and the $20,000 Floor
The deadline is short. Mont. Code Ann. § 27-2-207 gives you 2 years to sue for injury to personal property. Count from the crash date to be safe.
Shared blame matters as well. Under Mont. Code Ann. § 27-1-702, you may still collect so long as your fault does not exceed the other side's. Your award then shrinks by your share. At 51% or more, you get nothing.
Montana drivers must carry at least $20,000 in property damage liability. A bare minimum policy pays no more than that for everything harmed in one crash. A large repair bill can use up the limit before lost value is paid.
When an adjuster stalls, file with the Montana Commissioner of Securities and Insurance, which handles most auto claim problems. To see how nearby states compare, open the state laws table.