Diminished Value Claims: Tennessee

If your vehicle was damaged in an accident in the state of Tennessee and underwent repairs, its resale value is likely to be less than what it was before the crash.    This holds true even if your vehicle was perfectly repaired and looks as good as new.   This loss in market value is known as diminished value, and it is not recoverable in Tennessee due to unfavorable case law.

Summary – Tennessee Diminished Value Claims

Statute of Limitations: 3 years

Third Party Diminished Value Claim: No

First Party Diminished Value Claim: No, most insurance policies will exclude diminished value

Tennessee Property Damage Minimum Limits: $15,000 in coverage

Uninsured Motorist Coverage for Diminished Value: Yes, it is an optional coverage. It may cover hit and run accidents as well depending on your policy language.

Underinsured Motorist Coverage for Diminished Value: Yes, this coverage comes in handy when the at-fault driver doesn’t have enough property damage coverage.

Tennessee Small Claims Court Limit: $25,000, attorney representation and appeals are permitted

Tennessee Diminished Value Law

Grimes v. Hancock, No. M2011-01940-COA-R3-CV, 3 (Tenn. Ct. App. Jun. 26, 2012) (“.. the measure of damages is either repair costs or the difference in market value immediately before the accident and that immediately after the accident. It is not both. Unlike the Restatement provision, decrease in value measured after the repair is not a recognized element of allowable damages in Tennessee. Id. at 42 (bold in original).”)