A diminished value claim in Vermont rests on two things. One is an old court case on car damage. The other is a 2011 bulletin from the state insurance regulator, and together they reach both your own insurer and the other driver's.
Bulletin 164 and Your Own Insurer
The Department of Financial Regulation issued Insurance Bulletin 164 in 2011. It tells insurers to review and adjust a claim made for diminished value. The only way out is clear policy language that says otherwise, in a claim made by an insured.
So on your own policy, the wording decides. Ask for the full policy and look for a clause that rules out lost value. If there is none, the company must look at your claim on its merits.
The bulletin also says insurers must weigh all relevant facts sent by an insured or a third party. No single method is required. Still, each insurer must be able to explain a fair and equitable process, so ask the adjuster to describe it in writing.
The Before and After Measure
Against the at-fault driver, Vermont starts with market value. The usual measure is the gap between what the car was worth just before the crash and what it was worth after. In Kinney v. Cloutier, from 1965, the court allowed evidence of repair costs and of the value of the car as repaired.
That second figure is where lost value shows up. The Matthiesen, Wickert & Lehrer survey sums up the rule, and a diminished value appraisal gives you the number.
Three Years and the Fault Line
You get three years from when the claim accrues to sue over damage to personal property, under 12 V.S.A. § 512(5).
Fault is weighed, not fatal. Under 12 V.S.A. § 1036, you can collect as long as your negligence does not exceed the defendants' total negligence. Even an even split leaves you with a smaller award.
Low Limits and Where to Turn
Vermont's minimum auto policy includes only $10,000 for property damage. On a newer car, the repair alone can use up most of it. Small claims court lets you sue for up to $10,000, the same figure. If an insurer will not follow Bulletin 164, send a complaint to the Vermont Department of Financial Regulation.