Diminished value claims in Texas

Texas diminished value is owed by the driver who caused the crash, through their insurer.

Who can claim

The claim goes to the at-fault driver's insurer. Your own insurer does not pay it on a collision claim, per TDI Bulletin B-0027-00.

The formula

Texas does not set a formula. Many insurers still start with the 17c formula from a Georgia case, shown below. A private appraisal based on sales of cars like yours is the answer to a low number.

A repaired $32,000 car with moderate damage and 30,000 miles gives $1,280 by the 17c formula.

That is $32,000 times 10 percent, $3,200, times 0.5 for damage and 0.8 for miles. Try yours on the diminished value calculator.

The deadline

A lawsuit for damage to property must be filed within two years, under Civil Practice and Remedies Code 16.003.

Newest change: Texas auto policies issued or renewed after January 1, 2026 must have an appraisal clause, under SB 458. It settles fights over a loss on your own policy, not the other driver's.

How to file with their insurer

1. Call us, so a lawyer tells you which insurer to claim against.
2. Wait until repairs are done and get the final repair bill.
3. Get a written appraisal that lists sales of similar cars.
4. Send the appraisal, the repair bill and photos with a short letter asking for the amount.

Texas diminished value questions

Can I claim diminished value from my own insurer in Texas?

Not on a normal collision claim; the claim goes to the other driver's insurer.

Does the clock start at the crash or the repair?

At the crash. Waiting for the repair does not pause it.

Do I need an appraisal in Texas?

It helps. The insurer's formula usually comes in low, and an appraisal gives you sales to point to.

What if the other driver had no insurance?

Your uninsured motorist property damage coverage may pay, if you bought it.

What to do now

Call about lost value(833) 716-6705

We answer 24/7, review your lost value free, and link you to a car accident lawyer, no fee unless you win.

Call before you sign a release or answer the other insurer about your car, since a signed release can end the claim. Texas gives you two years from the crash to sue, and after that a court will not hear it. Call now for a free review of your lost value.

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