Virginia diminished value claims: what the law says
In Virginia you can claim diminished value from the at-fault driver, but only if you weren't at fault at all: Virginia still uses contributory negligence. Your own collision policy generally won't pay it. You have five 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
5 years from the crash to sue for damage to your car
If you were partly at fault
If you were even slightly at fault, the other driver's insurer can refuse the claim entirely.
State insurance department guidance
The Bureau of Insurance consumer guide says insurers pay third-party diminished value when the investigation warrants it, and no formula is set by law.
Claiming from the other driver's insurer
The Virginia Supreme Court's rule for a car that can be repaired is the reasonable cost of repairs plus any loss in the car's value after the repair. The state Bureau of Insurance says insurers pay diminished value when the investigation warrants it, and no formula is set by law.
“if ... the car involved could be restored to its former condition by repairs, the measure of damage is the reasonable cost of repairs, with reasonable allowance for depreciation.” — Averett v. Shircliff, 218 Va. 202 (1977)
Claiming from your own insurer
In Bickel v. Nationwide (1965), the Virginia Supreme Court held that a standard collision policy pays repair costs, not lost market value, because the policy doesn't promise it. A case with an incomplete or defective repair could come out differently.
“plaintiff's measure of damages is not the difference in the market value of the automobile immediately before and after the collision. The contract of insurance does not so provide.” — Bickel v. Nationwide Mutual Insurance Co., 206 Va. 419 (1965)
The deadline
You have five years to sue over injury to property, including your car.
“Every action for injury to property ... shall be brought within five years after the cause of action accrues.” — Va. Code § 8.01-243(B)
If you were partly at fault
Contributory negligence. If your own negligence helped cause the crash at all, you can't recover from the other driver. This doesn't apply against a driver who was willfully and wantonly negligent.
“Negligence of the parties may not be compared, and any negligence of a plaintiff which is a proximate cause of the accident will bar a recovery.” — Litchford v. Hancock, 232 Va. 496, 499 (1987); Wilby v. Gostel, 265 Va. 437 (2003)
What this means when you're deciding
Were you at fault at all? Even a small share can let the other insurer deny the claim. Be honest with yourself before spending money on an appraisal.
Not your fault? Ask in writing with proof. The Bureau of Insurance's guide says insurers should consider any credible evidence you send.
Your own insurer generally won't pay diminished value under collision coverage.
Deadline: five 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.
Fault rule: Litchford v. Hancock, 232 Va. 496, 499 (1987); Wilby v. Gostel, 265 Va. 437 (2003). Source.
Insurance department guidance: Virginia SCC Bureau of Insurance, Auto Insurance Consumer's Guide (2025 edition), FAQ 28. 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".