New Jersey courts have long let owners claim diminished value from the driver who caused the damage. The rule comes from a 1980 case, and it pays the repair bill plus the value a car loses for having been in an accident.
Fanfarillo Pays Repair Cost Plus Lost Value
The case is Fanfarillo v. East End Motor Co., 411 A.2d 1167 (N.J. Super. 1980). When repair costs are proven and the car is still worth less after the work, the owner gets both. There are two limits. The total cannot exceed the drop in market value, and it cannot exceed what the car was worth before.
The numbers in Fanfarillo show how this works. That car was stolen and damaged. It was worth $7,900 before the theft and $5,000 after, a difference of $2,900. Repaired, it was worth only $7,500. The jury could have found damages of $2,313, made up of $1,913 for the repair and $400 for depreciated value. That total stayed under the $2,900 cap.
Kieffer and Your Own Policy
Claims on your own collision coverage are different. The MWL 50-state survey sums up New Jersey in four words: it depends on policy language. In Kieffer v. High Point Ins. Co. from 2011, the policy clearly excluded lost value. The court held the insurer owed only the repair and nothing for stigma on resale. Read the exclusions in your policy before you file with your own company.
The 51% Bar and Your Share of Fault
New Jersey follows modified comparative negligence under N.J. Stat. § 2A:15-5.1. Recovery stays open as long as your negligence does not exceed the other driver's. Your damages are then reduced by your percentage of fault. A driver who was mostly to blame, at 51% or more, gets nothing.
Six Years, Policy Limits and Small Claims
The deadline is generous. N.J. Stat. § 2A:14-1 allows 6 years for any tortious injury to personal property. Waiting that long is still a poor idea, since repair records and photos get harder to find.
A new law raised injury limits in two phases. The second began January 1, 2026, and the minimum for property damage stayed at $25,000, says a state insurance bulletin. A driver with only that much coverage leaves you to pursue any excess directly.
Small claims court takes cases of $5,000 or less, and the New Jersey Courts post a form just for motor vehicle cases. For a stalled claim, contact the New Jersey Department of Banking and Insurance. Neighboring states are listed in the state laws table.