What Is a Kentucky Diminished Value Claim?

A diminished value claim in Kentucky recovers the loss in your vehicle’s resale value AFTER it’s been in an accident and properly repaired. Kentucky law allows first-party diminished value claims — you can potentially recover this from the AT-FAULT driver’s insurance company. Even a perfectly repaired car with an accident on its Carfax is worth less than an identical car without.

Three Types of Diminished Value

Insurance professionals recognize three categories:

• Inherent diminished value — the value loss caused SIMPLY by the fact the car has a wreck history, even with perfect repair. This is the type most commonly recoverable.
• Repair-related diminished value — additional loss from imperfect repair work (mismatched paint, panel misalignment)
• Immediate diminished value — the difference between pre-loss value and post-loss/pre-repair value (usually claimed as part of a total loss settlement)

Kentucky Law on Diminished Value

Kentucky courts have recognized diminished value as a recoverable element of damage in auto accident cases. To pursue a Kentucky diminished value claim:

• You must be the not-at-fault party (you don’t typically recover DV from your own carrier under collision)
• The claim is filed against the at-fault driver’s liability insurance
• You need documentation — usually a formal diminished value appraisal from a licensed appraiser
• The claim can be pursued alongside repair reimbursement

How to Actually Pursue a Kentucky DV Claim

Practical steps:

• Get repairs completed and documented (repair invoice, before/after photos)
• Hire a licensed diminished value appraiser (typically $150-$500 for the report)
• Submit the appraisal to the at-fault carrier with a written demand
• Negotiate — the carrier may push back or lowball; be prepared to negotiate or engage an attorney
• Small claims court is an option for smaller DV amounts

When Diminished Value Isn’t Worth Pursuing

DV claims make sense on newer vehicles with significant damage. They rarely make sense for:

• Vehicles over 10 years old (already heavily depreciated)
• Vehicles you plan to keep long-term (you’re not selling)
• Minor damage under $2,500 (DV recovery often less than appraisal cost)
• Total losses (already at ACV settlement)

How Boswell Insurance Agency Helps

We can’t file a diminished value claim on your behalf against a third-party carrier, but we can:

• Explain the process and connect you with reputable appraisers
• Advise on realistic recovery amounts
• Coordinate the repair claim against your own collision if you’d rather take that route
• Recommend an attorney for larger DV claims that don’t settle

Written by Blake Boswell, owner of the Boswell Insurance Agency, Murray, KY.