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Signing a diminished value demand letter with the repair invoice beside it

Diminished Value Demand Letter Template

A diminished value demand letter is a written request asking the insurance company to pay for the loss in your car's resale value after an accident. You can create one in three short steps.

Step 1 of 3

How much are you asking the insurer to pay?

The resale value your car lost, in dollars.

Need a number first? Get your estimate

Sample Diminished Value Demand Letter

[Today's date] [Your name] [Your address] [Insurance company] Claims Department Subject: Diminished value claim, claim number [Claim number] Dear Claims Adjuster: On [Date of the crash], my [Year, make and model] was in a crash and was damaged. Your company gave this crash the claim number in the subject line. The repairs are finished. They came to [Repair cost]. Even when the work is done well, the crash will still show up on my car's history report. Buyers pay less for a car that has a crash on its record. Because of that, my car is worth less today than it was before the crash. I am asking you to pay [Amount] for the value my car lost. This amount is based on the estimate or appraisal, the repair records and the vehicle history report that come with this letter. Please review these documents and reply to me in writing within 30 days of the date of this letter. If you do not agree with my amount, please explain why in writing. Please also tell me how you came up with your own amount and what information you based it on. Please send all letters and messages about my claim to me in writing at my address at the top of this letter. Sending this letter does not mean I give up any part of my claim. Thank you for your help with this claim. Sincerely, [Your name] Documents included: Repair estimate and final repair bill Photos of the damage before the repair Vehicle history report Diminished value estimate or appraisal report

Using the Diminished Value Demand Letter Template

If another driver caused the crash, mail your letter to that driver's insurance company. This is known as a third-party claim, and most states allow it. In most states your own insurance company will not pay for this loss. Every state also sets a time limit to file. The table of state rules lists both for your state. Your letter goes to the adjuster. That is the person at the insurance company who handles your claim. It is a simple business letter, not legal advice.

Papers to Send With Your Letter

Send copies, not the originals. Keep the originals somewhere safe at home. A strong file includes:

  • the repair estimate and the final repair bill
  • photos of the damage taken before the repair
  • a vehicle history report (a record of the car's past, sold by companies like Carfax) that lists the crash
  • an appraisal report (a written value from a car value expert), or a printout of your estimate from our calculator

A lot of insurance companies base their first offer on the 17c formula. This is a set rule. It starts at 10% of the car's value before the accident. The amount goes down if the damage was small or if the car has a lot of miles on it. Your paperwork can help you ask for more money.

Sending the Letter, Step by Step

  1. Send it with USPS Certified Mail. You will get a receipt, and someone has to sign for the letter when it is delivered. That gives you proof it arrived. A copy by email to the adjuster is fine too. Keep a copy of the letter, the papers you sent and the mail receipts.
  2. Wait for a written reply. Your letter asks the company to answer within 30 days. Some states set their own deadlines. In Washington, the insurance company has 30 days to finish its review, or it must tell you in writing why it needs more time. In Georgia, the other driver's insurance company has 60 days to answer a letter you sent by certified mail.
  3. A low first offer happens a lot, and you can respond in writing. The first offer is often just a starting point. Reply to each point using your documents and state again the amount you are asking for.
  4. Before you sign any paper that closes your claim, read it slowly. This paper is called a release. Once you sign it, you cannot ask for more money for that crash.
  5. If you hear nothing back, call the adjuster and ask them to write the decision down. Another choice is to send a complaint to your state's insurance department. That is the state office that watches insurance companies. If that does not work, you can go to small claims court, which is a simple local court for smaller money disputes, or you can hire a lawyer.

The diminished value claim guide walks through the whole claim, from your first phone call to getting paid.

Common Questions From Drivers

How Do You Write a Diminished Value Demand Letter?

Start with your claim number (the number the insurance company gave your case), your car, the date of the crash, and what the repairs cost. Then state how much money you want and how you figured out that amount. List every paper you include, and name a date for their written reply.

Can an Insurer Deny a Diminished Value Claim?

Yes. The insurance company can turn you down or offer you less money. Ask them to put the reason in writing, then respond with your own documents. Your state's insurance department takes complaints as well.

Is a Diminished Value Claim Worth It?

It usually works out when the car is newer, has fewer miles and had real damage. An older car with high miles may have lost very little value. Get the free estimate first, then compare it to the cost of an appraisal.

Does the Letter Work for GEICO, State Farm or Progressive?

Yes. You can use this letter with any insurance company. You choose the company in the last step of the letter form. Each insurer handles these claims differently, so before you send it, learn how GEICO, State Farm, Progressive and USAA deal with them.

Questions about your claim? Call to speak with someone who works on diminished value claims.

Call (855) 589-7222