Summary – Maryland Diminished Value Claims
Statute of Limitations: 3 years
Third Party Diminished Value Claim: Yes
First Party Diminished Value Claim: No, most insurance policies will exclude diminished value
Maryland Property Damage Minimum Limits: $15,000 in coverage
Uninsured Motorist Coverage for Diminished Value: Yes, it is mandatory coverage with a $250 deductible that applies. It includes coverage for hit and run drivers that flee the scene without being identified, uninsured motorists, and when the at-fault insurance company denies the claim due to non-permissive use.
Underinsured Motorist Coverage for Diminished Value: Yes, this coverage comes in handy when the at-fault insurance company didn’t have enough coverage.
Maryland Small Claims Court Limit: $5,000, attorney representation and appeals are permitted
Maryland Diminished Value Law
Fred Frederick Motors, Inc v. Krause, 12 Md. App.62 (1971), The general rule on tort damages, including motor vehicle torts, is easily stated: the damages should compensate the injured person for the wrong which has been done to him. If the vehicle is completely destroyed, the plaintiff receives the market value. For repairable vehicles, if the plaintiff can prove that after repairs his vehicle has a diminished market value from being injured, then he can recover in addition to the cost of repairs the diminution in market value, provided the two together do not exceed the diminution in value prior to the repairs.
Relevant Maryland Civil Pattern Jury Instructions MPJI-Cv 10:21 Property Damages
In an action for recovery of damages for damaged property you shall consider the following: a. Repairable Damages
Where the plaintiff’s damaged property can be repaired, the plaintiff is entitled to recover the reasonable cost of restoring the damaged property substantially to its condition immediately before it was damaged. In addition, the plaintiff is entitled to recover for the loss of the use of the property during a reasonable period of time while it is being repaired.
In cases where the damaged property has been repaired but its fair market value nevertheless has decreased, the plaintiff may recover the difference between the fair market value of the property before the damage and after the repair.
How to File a Diminished Value Claim in Maryland
The process for filing a diminished value claim in Maryland can be complex, but by following the right steps and providing the appropriate information, you can quickly receive the compensation you deserve.
The first step, and it’s a critical one, is to work with an independent auto appraiser. DVCHECK’s trained professional will provide you with a diminished value appraisal, which serves as proof of your claim.
Once the appraisal is complete, you will submit a written copy to the insurance company, who will use this document to process your claim. In many cases, insurance companies try to negotiate a settlement, so it’s in your best interest to have a professional on your side.
Maryland Diminished Value Claims and Getting Full Compensation
Maryland is a diminished value recovery state, which means you have the right to recover your vehicle’s diminished value if the accident wasn’t your fault.
In most cases, the at-fault party’s insurance will provide compensation for diminished value. But in some cases, the at-fault driver is not insured, which means you need to go through the uninsured motorist property damage portion of your own policy.
Whether you go through the other driver’s insurance or your own, these companies don’t make filing a claim easy. They intentionally negotiate the settlement value down, especially if your calculation is based on unreliable formulas or online calculators. Working with a professional appraiser, therefore, gives added authority and weight to your claim, increasing your chances of a successful negotiation for the full diminished value.
DVCHECK can help you recover your vehicle’s diminished value. If you have any questions, please call us at (850) 201-1950 or submit a request for a free estimate.