Pure comparative fault

Arizona diminished value claims: what the law says

In Arizona you can claim diminished value from the at-fault driver, and you don't have to sell the car to prove it. Your own collision policy generally won't pay it. You have two years to sue.

Written by Todd Whittington, Editor·Last reviewed October 18, 2026 Verified 2026-10-18

The short answer

Claim from the at-fault driver's insurer	Yes. You can claim the lost value from the at-fault driver's insurer.
Claim from your own insurer	No. Your own policy doesn't pay diminished value when the car is properly repaired.
Deadline to sue	2 years from the crash to sue for damage to your car
If you were partly at fault	Your claim is cut by your share of the blame, but you can still recover something even if you were mostly at fault.
State insurance department guidance	Not verified Not verified

Claiming from the other driver's insurer

In Oliver v. Henry (2011), Arizona's Court of Appeals affirmed a diminished value award and held you don't have to sell or trade the car to prove the loss. The measure is the cost of repair plus any drop in value after repairs, plus loss of use.

“Arizona law does not require the sale or transfer of a damaged vehicle to establish a claim for diminution in value” — Oliver v. Henry, 227 Ariz. 514, 260 P.3d 314 (App. 2011)

Claiming from your own insurer

In Johnson v. State Farm (1988), an Arizona appeals court held that a standard collision policy pays the cost of repair minus the deductible, not lost value. A policy that promises to restore value could come out differently.

“nowhere in the policy does there appear any language which requires State Farm either to restore the vehicle to its pre-accident condition” — Johnson v. State Farm Mut. Auto. Ins. Co., 157 Ariz. 1, 754 P.2d 330 (App. 1988)

The deadline

You have two years to sue over injury to another person's property.

“shall be commenced and prosecuted within two years after the cause of action accrues ... 3. For trespass for injury done to the estate or the property of another.” — A.R.S. § 12-542(3)

If you were partly at fault

Pure comparative fault. Your fault never bars the claim; it cuts it by your share of the blame. This doesn't help someone who caused the crash on purpose or recklessly.

“the claimant's action is not barred, but the full damages shall be reduced in proportion to the relative degree of the claimant's fault” — A.R.S. § 12-2505(A)

What this means when you're deciding

Not your fault? Ask in writing. You don't need to sell the car first; an appraisal and comparable listings can prove the loss.
Partly at fault? You can still claim; it's cut by your share.
Your own insurer generally won't pay diminished value under collision coverage.
Deadline: two years to sue. Run your numbers through the diminished value calculator first. If the typical appraisal midpoint is under $500, it is rarely worth chasing.

Is a claim worth it on your car?

The calculator runs the insurer's formula on your car, shows what appraisals usually find, and tells you whether to skip it, ask yourself, or pay for an appraisal.

Run the diminished value calculator →

Related state rules

Sources

At-fault driver's insurer: Oliver v. Henry, 227 Ariz. 514, 260 P.3d 314 (App. 2011). Source.
Your own insurer: Johnson v. State Farm Mut. Auto. Ins. Co., 157 Ariz. 1, 754 P.2d 330 (App. 1988). Source.
Deadline: A.R.S. § 12-542(3). Source.
Fault rule: A.R.S. § 12-2505(A). Source.
Insurance department guidance: we could not verify this.

We read every cited source on October 18, 2026. We cite statutes and court decisions, not law-firm or appraiser summaries. Anything we could not check against a primary source is marked "Not verified".

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