Diminished value rules by state
Use this as a starting point, not a permission slip. The important split is whether you are claiming against your own policy or seeking property damages from the at-fault driver.
How to read the lookup
“Generally recognized” still requires evidence. “Generally limited” can change with policy language. “Unclear” means the available automobile authority is not definitive.
| Jurisdiction | Your own insurer | At-fault driver claim |
|---|---|---|
| Alabama | Generally limited | Unclear |
| Alaska | Unclear | Conditional |
| Arizona | Generally limited | Generally recognized |
| Arkansas | Conditional | Generally recognized |
| California | Generally limited | Conditional |
| Colorado | Conditional | Generally recognized |
| Connecticut | Generally limited | Generally recognized |
| Delaware | Generally limited | Unclear |
| District of Columbia | Unclear | Generally recognized |
| Florida | Generally limited | Generally recognized |
| Georgia | Generally recognized | Generally recognized |
| Hawaii | Unclear | Unclear |
| Idaho | Generally limited | Unclear |
| Illinois | Generally limited | Generally recognized |
| Indiana | Generally limited | Generally recognized |
| Iowa | Unclear | Generally recognized |
| Kansas | Conditional | Generally recognized |
| Kentucky | Generally limited | Conditional |
| Louisiana | Generally limited | Generally recognized |
| Maine | Generally limited | Conditional |
| Maryland | Generally limited | Generally recognized |
| Massachusetts | Generally limited | Conditional |
| Michigan | Generally limited | Unclear |
| Minnesota | Conditional | Unclear |
| Mississippi | Generally recognized | Generally recognized |
| Missouri | Conditional | Generally recognized |
| Montana | Conditional | Unclear |
| Nebraska | Generally limited | Generally limited |
| Nevada | Unclear | Unclear |
| New Hampshire | Unclear | Unclear |
| New Jersey | Conditional | Generally recognized |
| New Mexico | Generally limited | Generally recognized |
| New York | Conditional | Conditional |
| North Carolina | Conditional | Generally recognized |
| North Dakota | Unclear | Generally limited |
| Ohio | Generally limited | Generally recognized |
| Oklahoma | Conditional | Generally recognized |
| Oregon | Generally recognized | Conditional |
| Pennsylvania | Generally limited | Generally recognized |
| Rhode Island | Conditional | Unclear |
| South Carolina | Generally limited | Generally recognized |
| South Dakota | Generally limited | Unclear |
| Tennessee | Generally limited | Conditional |
| Texas | Generally limited | Conditional |
| Utah | Unclear | Generally recognized |
| Vermont | Generally recognized | Conditional |
| Virginia | Generally limited | Generally recognized |
| Washington | Generally recognized | Generally recognized |
| West Virginia | Unclear | Conditional |
| Wisconsin | Generally limited | Generally recognized |
| Wyoming | Unclear | Unclear |
Why the two columns differ
Your own insurer owes what the contract promises. A third-party tort claim uses the state’s property-damage rules. That is why a state can limit first-party inherent diminished value and still recognize residual value loss against an at-fault driver.