Florida Diminished Value Laws: A Complete Guide
Living in the Sunshine State? Here is everything you need to know about recovering diminished value in Florida after a car accident.
Is Diminished Value Recoverable in Florida?
Yes. Florida law recognizes that a vehicle suffers a loss in value after an accident, even if it is repaired. This was solidified in the landmark case Siegle v. Progressive Consumers Insurance Co. (2001).
However, the court drew a sharp line between first-party and third-party claims.
Third-Party Claims (Not At Fault)
If someone else hits you in Florida, you CAN recover diminished value from their insurance company. The law views this as part of the property damage liability. You are entitled to be compensated for the difference in your vehicle's value before and after the accident.
Statute of Limitations
In Florida, the statute of limitations for property damage claims is generally four years from the date of the accident. This gives you time to file, but it is always better to act sooner rather than later.
First-Party Claims (At Fault / Uninsured)
Under the Siegle ruling, Florida insurers are NOT required to pay diminished value on first-party collision claims unless the policy specifically states otherwise. Standard policies almost always exclude this coverage.
Uninsured Motorist (UM) Exception: There is a legal gray area regarding Uninsured Motorist Property Damage (UMPD). Some arguments suggest that UMPD should cover what the at-fault driver would have owed you, which includes diminished value. However, this is often disputed by insurers and may require legal pressure.
Florida's "Free" Mediation Program
Florida Statute 627.7015 provides a mechanism for mediation in property insurance disputes. While more commonly used for homeowner claims, it can sometimes be applicable to auto disputes depending on the specific circumstances and policy language. It is a non-adversarial process meant to resolve disputes before they escalate to litigation.
Steps to Recover in Florida
- Establish Liability: Ensure the other driver's insurance has accepted 100% fault.
- Get a Certified Appraisal: Online calculators are not evidence. You need a USPAP-compliant appraisal report from a licensed adjuster (like National Appraisers, LLC) to prove your loss.
- Submit Your Demand: Send the appraisal report to the at-fault party's adjuster with a formal demand letter.
- Negotiate: Be prepared for an initial denial. Use your appraisal as leverage.
Conclusion
Florida is a friendly state for third-party diminished value claimants. Don't let insurance adjusters tell you "we don't pay that in Florida." The law is on your side.