Diminished Value Claims by State (2026 Guide)

Diminished Value by State: Where You Can Claim, and How Long You Have

By David Skillett, Founder and AnalystPublished August 6, 2026

Two things change by state: whether you can claim from your own insurer, and how long you have to file. Third-party claims against an at-fault driver's insurer are available in most states.

This is general information, not legal advice. Insurance law changes, and the facts of your accident matter. For a large claim, speak to an attorney in your state.

First-party versus third-party, the distinction that decides everything

Third-party claim: you claim against the at-fault driver's insurer. Available in the large majority of states. This is what most people mean by a diminished value claim
First-party claim: you claim against your own policy. Most policies exclude diminished value, and most states permit that exclusion. A small number of states have case law making first-party claims viable

States worth knowing about

State	Position
Georgia	The most claimant-friendly state, and the origin of the 17c formula. Insurers have an established duty to consider diminished value, including on first-party claims. This is why so much diminished value content is written about Georgia
Florida	Third-party claims are well established. First-party is generally excluded by policy
Texas	Third-party claims recognised. First-party generally excluded
California	Third-party claims available. Note the shorter property damage deadline of three years
Kansas, Michigan, Tennessee	Among the states where first-party diminished value has been restricted or barred by courts or policy language. Third-party claims may still be possible
No-fault states (including Michigan, New York, Florida)	No-fault rules govern injury claims, not property damage, so a third-party diminished value claim is often still available. The mechanics differ, so check locally

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Filing deadlines

Diminished value falls under your state's statute of limitations for property damage, which is usually longer than the injury deadline and shorter than people assume.

Deadline	Examples
2 years	Texas, Illinois, Pennsylvania, Ohio and others
3 years	California, Georgia, Massachusetts, New York (property damage) and others
4 to 6 years	Florida, Kansas, Missouri and others

Deadlines do change, so confirm your state's current limit before relying on it. If you are close to the line, file something in writing now.

What does not change by state

The insurer has no obligation to tell you diminished value exists. Almost none do
You must produce the number and the evidence yourself
The 17c formula is a negotiating position, not a legal standard, outside the Georgia context it came from
An at-fault accident usually leaves nobody to claim against, wherever you live

Start with what diminished value is, then work out your number and file the claim.

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Frequently asked questions

Which states allow diminished value claims?+

Most states allow third-party diminished value claims against an at-fault driver’s insurer. First-party claims against your own insurer are far more limited: most policies exclude them and most states permit that exclusion. Georgia is the most claimant-friendly state and is where the 17c formula originated.

How long do I have to file a diminished value claim in my state?+

It is governed by your state’s statute of limitations for property damage, commonly two years in states such as Texas and Pennsylvania, three years in states such as California, Georgia and New York, and four to six years in states such as Florida and Kansas. Confirm the current limit for your state, as they do change.

Can you claim diminished value in a no-fault state?+

Often yes. No-fault rules generally govern injury claims rather than property damage, so a third-party diminished value claim against the at-fault driver’s insurer may still be available. The mechanics vary, so check the position in your state.

Why is Georgia mentioned so often with diminished value?+

Because Georgia case law established an insurer duty to consider diminished value, including on first-party claims, and because the widely used 17c formula comes from a footnote in a Georgia class action. That makes Georgia unusually claimant-friendly and explains why so much diminished value guidance is written from a Georgia perspective.