[YOUR FULL NAME]
[YOUR STREET ADDRESS]
[CITY, STATE, ZIP CODE]
[YOUR PHONE NUMBER]
[YOUR EMAIL ADDRESS]
[DATE]
[INSURANCE COMPANY NAME]
Claims Department
[INSURANCE COMPANY MAILING ADDRESS]
[CITY, STATE, ZIP CODE]
Re: Diminished Value Claim
| Your Insured: | [AT-FAULT DRIVER'S FULL NAME] |
| Claim Number: | [CLAIM / FILE NUMBER] |
| Date of Loss: | [DATE OF ACCIDENT] |
| Your Insured's Vehicle: | [YEAR / MAKE / MODEL] |
| Claimant's Vehicle: | [YEAR / MAKE / MODEL, last 6 of VIN: XXXXXX] |
Dear Claims Representative:
I am the owner of the above-referenced claimant vehicle, which was damaged on [DATE OF ACCIDENT] as a direct result of the negligence of your insured. This letter constitutes a formal demand for payment of inherent diminished value resulting from that accident.
Background
My vehicle, a [YEAR/MAKE/MODEL] with approximately [MILEAGE] miles at the time of the accident, sustained [BRIEF DESCRIPTION OF DAMAGE, e.g., "significant front-end and structural damage"] in the above-referenced collision. Repairs were completed by [REPAIR SHOP NAME] on [DATE REPAIRS COMPLETED] at a total cost of $[REPAIR COST], as shown in the enclosed repair invoice.
Basis for Diminished Value
Despite being restored to pre-accident condition, my vehicle has suffered a permanent and measurable reduction in market value. This reduction — known as "inherent diminished value" — arises because any vehicle with a reported accident history sells for materially less than an otherwise identical vehicle with a clean history. Prospective buyers routinely check vehicle history reports (Carfax, AutoCheck), and a disclosed accident permanently stigmatizes the vehicle in the marketplace regardless of repair quality.
Your insured's liability coverage is required to make me whole for all compensable damages arising from the accident, including this loss of market value.
Valuation
Based on [choose one: an independent appraisal conducted by [APPRAISER NAME / COMPANY] on [DATE], attached hereto / a comparative analysis of recent sales of identical vehicles with and without accident histories / the widely-accepted 17c formula using a pre-accident NADA/KBB value of $[PRE-ACCIDENT VALUE]], the inherent diminished value of my vehicle is:
Diminished Value Demanded: $[AMOUNT]
Demand
I demand payment of $[AMOUNT] within 30 days of the date of this letter. Please direct payment to my address above.
If I do not receive payment or a substantive written response by [DATE — 30 days from letter date], I will consider all available remedies, including:
- Filing a complaint with the [YOUR STATE] Department of Insurance;
- Filing a claim in small claims court; and
- Retaining legal counsel and seeking all available damages, fees, and costs.
This letter is not intended as a complete statement of all facts and legal theories applicable to this claim, and I expressly reserve all rights and remedies.
Sincerely,
[YOUR PRINTED NAME]
Enclosures:
1. Photos of vehicle damage (pre-repair)
2. Completed repair invoice from [REPAIR SHOP NAME]
3. [Diminished value appraisal report / Comparable vehicle sales data]
4. Vehicle history report (Carfax / AutoCheck)
5. Accident report / police report [if available]