Texas statute of limitations: 2 years. Don't wait until it's too late. Call 1-888-967-6488 for a free evaluation.
DV Status
Third-Party DV Recoverable
Statute of Limitations
2 years
Fault System
Modified Comparative Fault (51%)
Key Points for Texas Diminished Value Claims
Diminished value recognized under tort law
Must be less than 51% at fault
Large vehicle market with extensive comparable data
Strong case law supporting DV claims
How We Handle Your Texas DV Claim
Free Review
We evaluate your accident and repair details at no cost.
Appraisal
Licensed appraisers prepare a certified DV report.
Claim Filed
We submit a professional claim to the insurer.
You Get Paid
We negotiate to maximize your settlement.
Texas Diminished Value Claims: What You Need to Know
Texas is one of the strongest states in the country for diminished value claims. Under Texas tort law, if another driver is at fault for an accident that damages your vehicle, you have the right to recover the loss in market value that your vehicle suffers even after it has been fully repaired. This loss — known as inherent diminished value — is recognized by Texas courts as a legitimate and recoverable damage.
Texas follows a modified comparative fault system with a 51% threshold. This means you can recover diminished value as long as you are less than 51% at fault for the accident. If you are found to be 51% or more at fault, you are barred from recovery entirely. The statute of limitations for property damage claims in Texas is 2 years from the date of the accident, so it is important to act promptly.
Why Texas Diminished Value Claims Are Often Undervalued
Insurance companies in Texas frequently use formula-based methods — such as the discredited "17c" formula — to calculate diminished value. These formulas typically produce artificially low numbers that do not reflect the actual loss in market value. A professional, independent appraisal based on comparable market data is essential to establishing the true diminished value of your vehicle.
Texas has a large and diverse vehicle market, with major metro areas including Houston, Dallas-Fort Worth, San Antonio, Austin, and El Paso. This means there is extensive comparable sales data available to support a strong diminished value claim. Our appraisers use actual market data from your local area to produce certified reports that withstand insurance company scrutiny.
Texas Diminished Value and the Appraisal Clause
While the appraisal clause in your own insurance policy is typically used for first-party disputes (such as total loss valuations), diminished value claims in Texas are generally third-party claims filed against the at-fault driver's insurance. For these claims, a certified diminished value appraisal report serves as your primary evidence. If the at-fault insurer refuses to pay a fair amount, the report supports your case in demand letters, mediation, or litigation.
Frequently Asked Questions: Diminished Value in Texas
How much is my Texas diminished value claim worth?
The value depends on your vehicle's pre-accident market value, the severity of the damage, and the quality of repairs. Newer, higher-value vehicles typically have larger diminished value claims. Our certified appraisals for Texas vehicles are based on actual comparable market data from your local area, not generic formulas.
Can I file a diminished value claim against my own insurance in Texas?
Texas law primarily supports diminished value claims as third-party claims — meaning you file against the at-fault driver's insurance company. First-party diminished value claims (against your own insurer) are generally not recognized in Texas unless your policy specifically provides for it.
What is the deadline to file a diminished value claim in Texas?
The statute of limitations for property damage claims in Texas is 2 years from the date of the accident. This applies to diminished value claims as well. We strongly recommend starting the process as soon as your vehicle repairs are complete to preserve your rights.
Do I need a lawyer to file a diminished value claim in Texas?
Not necessarily. Many diminished value claims in Texas are resolved through direct negotiation with the at-fault driver's insurance company, supported by a certified appraisal report. However, if the insurer refuses to negotiate in good faith, an attorney may be helpful. Our team can guide you through the process.
What evidence do I need for a Texas diminished value claim?
The most important piece of evidence is a certified diminished value appraisal report from an independent appraiser. You should also have the accident report, repair invoices, photos of the damage, and any correspondence with the insurance company. Our appraisers compile all of this into a professional claim package.
Common Questions About Diminished Value in Texas
What is diminished value and does it apply in Texas?
Diminished value is the loss in market value that a vehicle suffers after being involved in an accident, even after it has been fully repaired. In Texas, diminished value is recognized and recoverable. Texas is a strong state for diminished value claims with extensive case law supporting vehicle owners' rights. The large Texas vehicle market provides substantial comparable sales data for accurate valuations.
How long do I have to file a diminished value claim in Texas?
The statute of limitations for property damage claims in Texas is 2 years from the date of the accident. It is important to start the process as soon as your vehicle repairs are complete to preserve your rights and maximize your recovery.
Do I need a professional appraisal for my diminished value claim?
While not legally required, a certified diminished value appraisal from an independent appraiser is the single most important piece of evidence in a DV claim. Insurance companies routinely deny or lowball claims that are not supported by professional documentation. Our certified reports are based on actual comparable market data and are designed to withstand insurer scrutiny.