In Texas you can claim diminished value from the at-fault driver's insurer, and the state insurance department says so in writing. Your own collision coverage won't pay it after a complete repair, but your uninsured motorist coverage may. You have two years to sue.
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
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, and you get nothing if you were more than half at fault.
State insurance department guidance
TDI bulletin: no first-party diminished value after complete repair; third-party and UM/UIM claims may include it.
Claiming from the other driver's insurer
The Texas Supreme Court has described the measure for a damaged car that can be repaired as the cost of repair, with allowance for any difference between the original value and the value after repairs. The Texas Department of Insurance says an insurer may owe a third-party claimant for lost market value regardless of how complete the repair was.
“the reasonable cost of repair or restoration where feasible, with due allowance for any difference between the original value and the value after repairs” — J&D Towing, LLC v. American Alternative Ins. Corp., 478 S.W.3d 649 (Tex. 2016) (n.28, quoting Pasadena State Bank v. Isaac, 228 S.W.2d 127, 128-29 (Tex. 1950))
Claiming from your own insurer
In American Manufacturers Mutual v. Schaefer (2003), the Texas Supreme Court held that the standard Texas auto policy doesn't pay diminished value on a car that was fully and adequately repaired. The Texas Department of Insurance also says uninsured/underinsured motorist coverage may pay diminished value.
“Schaefer's standard automobile insurance policy does not obligate AMM to compensate Schaefer for his fully repaired vehicle's diminished market value.” — American Manufacturers Mutual Ins. Co. v. Schaefer, 124 S.W.3d 154 (Tex. 2003)
The deadline
You have two years to sue over injury to another person's property.
“a person must bring suit for trespass for injury to the estate or to the property of another ... not later than two years after the day the cause of action accrues” — Tex. Civ. Prac. & Rem. Code §16.003(a)
If you were partly at fault
Modified comparative fault (51% bar). You get nothing if you were more than 50% responsible. At 50% or less, your claim is cut by your share.
“a claimant may not recover damages if his percentage of responsibility is greater than 50 percent” — Tex. Civ. Prac. & Rem. Code §33.001; §33.012(a)
What this means when you're deciding
Not your fault? Ask the at-fault driver's insurer in writing and point to TDI Bulletin B-0027-00, which says insurers may owe lost market value to third-party claimants.
The other driver uninsured or underinsured? Check your uninsured/underinsured motorist coverage. TDI says it may pay diminished value.
Your own collision coverage won't pay it after a complete repair.
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.
At-fault driver's insurer: J&D Towing, LLC v. American Alternative Ins. Corp., 478 S.W.3d 649 (Tex. 2016) (n.28, quoting Pasadena State Bank v. Isaac, 228 S.W.2d 127, 128-29 (Tex. 1950)). Source.
Your own insurer: American Manufacturers Mutual Ins. Co. v. Schaefer, 124 S.W.3d 154 (Tex. 2003). Source.
Insurance department guidance: Tex. Dep't of Ins. Commissioner's Bulletin No. B-0027-00 (Apr. 6, 2000), 'Payment of Diminished Value to Policyholders'. 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".