If your car has lost value after an accident, you may be entitled to compensation through a diminished value (DV) claim. But there’s a catch—every state has a statute of limitations, a legal time limit on how long you have to file your claim.
This timeframe starts on the date of the accident. Missing this deadline means losing your right to recover your car’s lost value.
In this guide, you’ll find a state-by-state breakdown of statute of limitations for diminished value claims and answers to frequently asked questions.
Statute of Limitations by State (Table)
Knowing your deadline is crucial. Each state has different timeframes, ranging from one year to six years. Below is a comprehensive list of statutes of limitations by state so you can determine your claim deadline.
| State | Years |
|---|---|
| Alabama | 2 years |
| Alaska | 2 years |
| Arizona | 2 years |
| Arkansas | 3 years |
| California | 3 years |
| Colorado | 3 years |
| Connecticut | 2 years |
| Delaware | 2 years |
| DC | 3 years |
| Florida | 4 years |
| Georgia | 4 years |
| Hawaii | 2 years |
| Idaho | 3 years |
| Illinois | 5 years |
| Indiana | 2 years |
| Iowa | 5 years |
| Kansas | 2 years |
| Kentucky | 2 years |
| Louisiana | 1 year |
| Maine | 6 years |
| Maryland | 3 years |
| Massachusetts | 3 years |
| Michigan | 3 years |
| Minnesota | 6 years |
| Mississippi | 3 years |
| Missouri | 5 years |
| Montana | 2 years |
| Nebraska | 4 years |
| Nevada | 3 years |
| New Hampshire | 3 years |
| New Jersey | 6 years |
| New Mexico | 4 years |
| New York | 3 years |
| North Carolina | 3 years |
| North Dakota | 6 years |
| Ohio | 4 years |
| Oklahoma | 2 years |
| Oregon | 6 years |
| Pennsylvania | 2 years |
| Rhode Island | 10 years |
| South Carolina | 3 years |
| South Dakota | 6 years |
| Tennessee | 3 years |
| Texas | 2 years |
| Utah | 3 years |
| Vermont | 3 years |
| Virginia | 5 years |
| Washington | 3 years |
| West Virginia | 2 years |
| Wisconsin | 6 years |
| Wyoming | 4 years |
How Your State Affects Your Diminished Value Claim
Each state has its own rules on diminished value recoverability and deadlines. Some states make it easier to claim DV, while others place restrictions:
- States that allow diminished value claims: While most states permit third-party diminished value (DV) claims, some also allow first-party claims. In Georgia and North Carolina, you can file a DV claim against your own insurer, unlike in many other states.
- States with shorter deadlines: Louisiana and Tennessee only allow 1 year to file a claim.
- States with longer deadlines: Maine, Wisconsin, and North Dakota allow up to 6 years.
Not sure about your state’s rules? Check the Diminished Value Laws by State.
Frequently Asked Questions
What If You Miss the Deadline?
If the statute of limitations expires, you can no longer legally file a diminished value claim.
Can I File a Diminished Value Claim If I Already Sold the Vehicle?
This depends on the insurance company, but in most cases, yes—as long as you can provide documentation proving the accident, repairs, and sale.
How Much Can I Get for My Vehicle’s Diminished Value?
The average vehicle diminished value settlement is between 10% and 25% of the fair market value of the vehicle. However, the actual amount of a diminished value settlement can vary depending on a number of factors. Click here to calculate your Diminished Value.
Can I Get Diminished Value on a Leased Vehicle?
Maybe. Less than 40% of DV claims on leased vehicles are successful.
Although the vehicle loses value regardless of ownership, insurance payouts typically go to the “loss payee”—the leasing company (lessor).
However, you may be successful in collecting Diminished Value if you can prove that:
- Your lease agreement penalizes you for the loss in resale value due to the accident.
- You plan to buy the vehicle when the lease ends.
- You are selling or trading in the vehicle before the lease expires.
- The lessor is not pursuing a separate DV claim against the insurer.
Do I Need an Attorney to File a Diminished Value Claim?
No, an attorney is not required to file a Diminished Value claim. However, legal representation can be helpful if your case involves bodily injury claims or other non-property-related damages.
Browse all frequently asked questions about diminished value claims →
Not Sure if You Qualify for a Diminished Value Claim? Get a Free Case Review Today!
Time is of the essence. If you’re unsure whether you qualify for a diminished value claim, we can help you find out for free.
With over 20 years of experience, we’ve helped more than 10,000 customers get the compensation they deserve from insurance companies.
Fill out the form below, and one of our appraisers will review your entire case for free. We’ll let you know how much you can recover and guide you through the claims process.
