Use this template for your diminished value demand letter:
[Your Name]
[Your Address]
[City, State ZIP]
[Phone Number]
[Email]
[Date]
VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED
[Insurance Company Name]
Claims Department
[Insurance Address]
[City, State ZIP]
Re: Diminished Value Claim
Claim Number: [Claim Number]
Date of Loss: [Accident Date]
Insured: [At-Fault Driver Name]
Policy Number: [If Known]
Claimant Vehicle: [Year Make Model]
VIN: [VIN Number]
Dear Claims Adjuster:
I am writing to submit a claim for diminished value resulting from the automobile accident that occurred on [Date of Accident] in [City, County], California. Your insured, [At-Fault Driver Name], was determined to be at fault for this collision.
ACCIDENT SUMMARY
On [Date], your insured [briefly describe how accident occurred - e.g., "rear-ended my vehicle while I was stopped at a red light at the intersection of X and Y streets"]. A police report was filed (Report No. [Number]), which documents that your insured was at fault.
VEHICLE INFORMATION
My vehicle is a [Year] [Make] [Model] with [Mileage] miles at the time of the accident. Prior to this collision, my vehicle had no accident history and was in excellent condition.
REPAIR INFORMATION
My vehicle was repaired at [Body Shop Name]. The total repair cost was $[Amount], which included:
- [List major repairs - e.g., "Replacement of rear bumper assembly"]
- [e.g., "Repair of trunk lid"]
- [e.g., "Frame straightening"]
- [Other repairs]
While the repairs have been completed satisfactorily, my vehicle now has a permanent accident history that will appear on vehicle history reports such as Carfax and AutoCheck. This significantly reduces its market value.
DIMINISHED VALUE CALCULATION
Pre-Accident Fair Market Value: $[Amount]
(Based on [NADA/KBB/Edmunds] valuation dated [Date])
Using the 17c diminished value formula:
- Base Loss of Value (10%): $[Amount]
- Damage Severity Multiplier: [0.25-1.0] ([describe damage level])
- Mileage Multiplier: [0.0-1.0] ([state mileage range])
- Calculated Diminished Value: $[Amount]
[OR, if you have a professional appraisal:]
I have obtained a professional diminished value appraisal from [Appraiser Name/Company], a certified vehicle appraiser. Based on their analysis of comparable vehicles and market conditions, the diminished value of my vehicle is $[Amount]. A copy of this appraisal is enclosed.
DEMAND
Based on the above, I demand payment of $[Amount] for the diminished value of my vehicle. This amount is in addition to any property damage or other claims already paid or pending.
Please respond to this demand within thirty (30) days. If I do not receive a satisfactory response, I will pursue all available legal remedies, including filing a lawsuit in California court to recover my damages, plus court costs and any applicable interest.
I look forward to your prompt attention to this matter.
Sincerely,
[Your Signature]
[Your Printed Name]
Enclosures:
- Copy of Police Report
- Pre-Accident Vehicle Valuation
- Repair Estimate and Invoice
- Photos of Damage
- Vehicle History Report (Carfax/AutoCheck)
- Diminished Value Appraisal (if obtained)
- Comparable Vehicle Sales (if available)
Pro Tip: Send your demand letter via certified mail with return receipt requested. This provides proof that the insurance company received your claim and starts the clock for their response.