Diminished Value Claims in Texas
If someone hit your car in Texas and it's worth less now even after repairs, you can claim that lost value — and you generally have 2 years to do it. Most insurers lowball this loss and count on you not noticing.
See what your Texas car really lost
Free, on screen — your honest number next to the insurer's 17c offer.
Can you claim diminished value in Texas?
Yes — Texas treats the resale value your car lost after an accident as a real loss you can recover. Backed by the Texas Department of Insurance's official position in Commissioner's Bulletin B-0027-00.
You claim it from the at-fault driver's insurer — the resale value your repaired car lost is part of the property damage they owe you. Your own collision coverage generally won't pay diminished value. The exception is your uninsured/underinsured motorist (UM/UIM) coverage, which can apply when the at-fault driver had no insurance or too little.
How much can you get?
It depends on your car — mostly how bad the damage was, your mileage, and what the car was worth before the crash. The calculator turns those into a market-based range and shows it next to the insurer's low “17c” number.
How to file a diminished value claim in Texas
- 1Confirm the other driver was at fault — in Texas you recover diminished value from the at-fault driver's insurer.
- 2Get your car fully repaired and gather the repair invoice, photos, and your pre-accident value.
- 3Build evidence of the lost resale value — comparable listings for your exact vehicle (clean vs. accident-history), and an independent appraisal if you want to strengthen it.
- 4Send a written demand with your figure and a response deadline to the at-fault insurer.
- 5If the insurer lowballs or ignores you, escalate to the Texas Department of Insurance and consider small-claims court.
Texas insurers lean on the “17c” formula, which underpays — a market-based appraisal and clean-vs-accident comps for your exact car are the strongest counter. See the full step-by-step guide.
If they lowball you
You have leverage. If the insurer ignores you or offers a fraction of your documented value, you can file a free complaint with the Texas Department of Insurance — file online or call 800-252-3439. Insurers take state complaints seriously, and for the remaining gap, small-claims court is an option.
Texas diminished value: FAQ
Can I claim diminished value from my own insurance in Texas?
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Usually no. In Texas your own collision coverage generally won't pay diminished value — you recover it from the at-fault driver's insurer instead. The one exception is your uninsured/underinsured motorist (UM/UIM) coverage, which can apply when the at-fault driver had no insurance or too little.
How long do I have to file a diminished value claim in Texas?
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Generally two years from the date of the accident (Tex. Civ. Prac. & Rem. Code § 16.003). Don't wait — your evidence is strongest right after the repair. Confirm your specific deadline with a licensed attorney.
Does Texas require insurers to pay the 17c number?
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No. The '17c' formula is an insurer calculation, not Texas law, and you are not required to accept it. A market-based appraisal and comparable resale listings can support a higher, documented demand.
Can I still claim if the accident was partly my fault?
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Texas uses modified comparative fault. If you're found 51% or more at fault, you generally can't recover at all. Below that, your recovery is reduced by your share of fault — being 20% at fault means roughly a 20% reduction.
Do I have to hire an appraiser, or can I do it myself?
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You can document it yourself with comparable listings for your exact year, make, and model — clean-history cars next to accident-history ones. An independent appraisal isn't required, but it carries more weight if the claim is disputed or heads to court.
Get your Texas claim kit
A personalized demand letter, a Texas Department of Insurance complaint, and a comps exhibit — generated from your answers and Texas's rules, finished and ready to send.
Diminished value in other states
Sources
- Commissioner's Bulletin B-0027-00 (diminished value position) — Texas Department of Insurance
- Get help with an insurance complaint — Texas Department of Insurance
- Filing deadline: Tex. Civ. Prac. & Rem. Code § 16.003.
Last reviewed 2026-06-29. State rules change — verify current law for your situation.
RecoupPro provides self-help information and document tools, not legal advice. We are not a law firm and don't provide legal representation, and using this site does not create an attorney-client relationship. For advice about your own situation, consult a licensed attorney.