Georgia diminished value claims: what the law says
Georgia is the state where you can ask for diminished value from two places: the at-fault driver's insurer, and your own insurer. The Georgia Supreme Court held in 2001 that a standard auto policy promising to pay for "loss" must pay for lost value after a repair. You have four years to sue over damage to your car.
Written by Todd Whittington, Editor·Last reviewed 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
Yes. Your own auto policy can pay diminished value unless it clearly excludes it.
Deadline to sue
4 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, and you get nothing if you were 50% or more at fault.
State insurance department guidance
A 2001 Insurance Commissioner directive told insurers to assess and pay first-party diminished value after Mabry. It is no longer on the current site.
Claiming from the other driver's insurer
Georgia courts let you claim the reasonable cost of repairs, plus the car's lasting loss in value, from the driver who caused the crash. The total can't be more than what the car was worth before the crash.
“he may claim the reasonable value of repairs made necessary by the collision, together with hire on the vehicle while rendered incapable of use, and the value of any permanent impairment” — Canal Ins. Co. v. Tullis, 237 Ga. App. 515, 515 S.E.2d 649 (1999) (quoting Sykes v. Sin, 229 Ga. App. 155 (1997))
Claiming from your own insurer
In State Farm v. Mabry (2001), the Georgia Supreme Court held that an auto policy that promises to pay for "loss" must pay for diminished value when it happens, and that the insurer has to assess it along with the physical damage. A policy that clearly excludes diminished value could change that, so read yours.
“State Farm is obligated to pay for diminution in value when it occurs” — State Farm Mut. Auto. Ins. Co. v. Mabry, 274 Ga. 498, 556 S.E.2d 114 (2001)
The deadline
You have four years from the crash to sue over damage to personal property, which includes your car.
“Actions for injuries to personalty shall be brought within four years after the right of action accrues.” — O.C.G.A. § 9-3-31
If you were partly at fault
Modified comparative fault (50% bar). Your recovery is cut by your share of the blame, and you get nothing if you were 50% or more responsible.
“the plaintiff shall not be entitled to receive any damages if the plaintiff is 50 percent or more responsible for the injury or damages claimed.” — O.C.G.A. § 51-12-33(a), (g)
What this means when you're deciding
Not your fault? Ask the at-fault driver's insurer in writing. Include the repair invoice and listings for the same car with a clean history.
Your fault, or the other driver won't pay? Ask your own insurer to assess diminished value on your collision claim. Mabry says it has to, unless your policy clearly excludes it.
Partly at fault? At 50% or more, you get nothing from the other driver. Under 50%, expect the claim to be cut by your share.
Watch the clock: four 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.
Insurance department guidance: Ga. Ins. Commissioner Directive 01-P&C-1, 'Diminution of Value - First Party Physical Damage Claims' (Dec. 7, 2001). Source.
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".