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Are diminished value claims valid in Kentucky?

On Behalf of | Jun 6, 2024 | Injuries

After a car accident, you have a lot to worry about. But, one thing that many people forget about until they go to sell their car is that the accident likely reduced the value of their vehicle. Diminished value claims allow car owners to recover the difference between their vehicle’s market value before the motor vehicle accident and its value after repairs. Despite being restored, a vehicle’s market value usually declines because buyers tend to avoid vehicles with a history of car crashes.

Are diminished value claims valid in Kentucky?

Yes, diminished value claims are recognized in Kentucky. As a diminished value state, Kentucky’s case law supports compensation claims for the decreased market value when another party is at fault. However, many car insurance policies exclude diminished value claims.

There is a five-year statute of limitations for filing diminished value claims in Kentucky. However, diminished value claims cannot be made if you were at fault for the car accident or if the damage resulted from non-collision events.

Steps to file a diminished value claim

To file a diminished value claim in Kentucky, you will first need to gather proof of diminished value. Compile this documentation and professional appraisals to support your claim. Hiring a professional appraiser can significantly help in securing a fair settlement.

Next, you will submit the Appraisal and Demand Letter. These documents should be sent to the at-fault driver’s insurance company. Finally, you negotiate and settle, if the offer was fair. Be prepared for negotiations.


Diminished value claims are a valid and important means of compensation for car accident victims in Kentucky. These claims address the reduction in market value that a vehicle suffers post-accident. Understanding your rights and the steps to file a claim can ensure you receive the compensation you deserve.