The Letter Every Insurance Company Sends
You file a diminished value claim. Two weeks later, you get a letter: 'After careful review, we have determined that diminished value is not a covered claim under the applicable policy.' Or: 'Our investigation has concluded that your vehicle has been restored to its pre-loss condition and no further compensation is warranted.' I've seen thousands of these letters. They are not statements of law — they are negotiation tactics designed to make you go away. And for most people, it works. They give up. That's exactly what the insurance company is counting on.
What Utah Law Actually Says
Under Utah Code §31A-22-309, the at-fault driver's liability insurance covers ALL property damage resulting from the accident. Diminished value IS property damage — it's the measurable loss in your vehicle's market value due to the accident appearing on its Carfax history. The law doesn't have an exception for diminished value. The insurance company's letter is not citing a law because there is no law that exempts them. They're citing their own internal policy, which does not override Utah statute.
Why 39% of Buyers Won't Touch Your Car
Carfax data shows that approximately 39% of used car buyers will not purchase a vehicle with accident history at any price. The remaining buyers demand a 10-25% discount. This is real, measurable economic damage. Your car was worth $28,000 before the accident. After repairs — even perfect repairs — it's worth $23,000-$25,000 because the accident is permanently on its history. That $3,000-$5,000 difference is money the at-fault driver's insurance owes you. Typical DV recoveries: $3,000-$8,000 for standard vehicles, $8,000-$20,000+ for luxury vehicles and Teslas.
What Happens When I Send Our Demand Letter
When I send a demand letter backed by a USPAP-certified appraisal citing Utah Code §31A-22-309 and R590-190 (which requires insurers to settle fairly within 30 days), suddenly the insurance company 'finds' the money. Every single time. They know the law. They were hoping you didn't. The appraisal uses real dealer transaction data — not CCC ONE, not the 17c formula that caps diminished value at 10% of your car's value. Real data. Real comparables. Real numbers that hold up in court. If they still won't pay? We file suit. We've done it thousands of times. Our team takes DV cases to small claims court regularly, and judges consistently side with market data over insurance company algorithms.
Frequently Asked Questions
What is the 17c formula and why should I reject it?
The 17c formula caps diminished value at 10% of your car's value and then reduces it further based on damage severity and mileage. It was created by State Farm to minimize payouts and is NOT based on real market data. A USPAP-certified appraisal using actual dealer transaction data almost always proves a higher value.
Can I file a diminished value claim on my own insurance?
In most states including Utah, DV claims are filed against the AT-FAULT driver's liability insurance, not your own policy. Your own collision coverage typically does not include DV. That's why having LawyerUp handle your property damage alongside your injury claim matters — we know exactly where to file and how to fight.
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