Colorado Diminished Value Claims
What Colorado Drivers Need to Know
A wreck on the roads around Denver, Colorado Springs, or Boulder can leave your car looking like new after the shop is done — but a buyer who runs a vehicle history report will still pay less for it. Colorado law has recognized that loss for a century, treating it as a legitimate part of a property damage claim when another driver is at fault. You have three years from the date of the accident to pursue it, so it's worth starting the paperwork well before that window closes.
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01
Three-Year Filing Window
Colorado allows three years from the date of the accident to pursue a diminished value claim.
02
Filing Against the At-Fault Driver
Colorado recognizes diminished value claims when another driver is at fault and allows recovery from that driver's liability insurance.
03
Your Own Policy Won't Cover It
Colorado does not generally allow diminished value claims under your own first party policy, and uninsured or underinsured motorist coverage does not apply to diminished value.
04
Colorado Small Claims Cap: $7,500
Colorado's small claims court allows diminished value claims up to $7,500.
How Colorado Courts Have Ruled on Diminished Value
Colorado's courts settled this issue nearly a century ago, and later decisions have only reinforced it.
Larson v. Long, 74 Colo. 152 (1923)
The Colorado Supreme Court confirmed that evidence of depreciation in an automobile's value resulting from an accident is admissible, and that such depreciation is a legitimate element of damages.
Trujillo v. Wilson, 189 P.2d 147 (Colo. 1948)
The court held that the proper measure of damage to personal property is the difference between the vehicle's value immediately before the damage and its value immediately after, together with any reasonable costs incurred to restore it.
Colorado Diminished Value: Common Questions
Below are answers to common questions about Colorado diminished value claims, including how claims work, time limits, and how loss in market value is calculated after an accident.
Is diminished value recoverable in Colorado?
Yes — Colorado permits third-party diminished value claims when another driver caused the accident.
Who is responsible for paying if I wasn't at fault?
The at-fault driver's insurer. Colorado follows a fault-based system, so their carrier may owe diminished value on top of repair costs.
Can I file this claim with my own insurance company?
Generally no, unless your policy specifically includes first-party diminished value coverage.
How is the value of the loss determined?
Colorado has no mandated formula — a market-based comparison of similar vehicles is the standard way to measure the impact on resale value.
What's the statute of limitations?
Colorado generally allows three years from the accident date for property damage claims.
Will an insurer pay without documentation?
Rarely at full value — claims backed by detailed market evidence are more likely to get fair consideration.
Still have a question?
Want to better understand diminished value in Colorado? Our Colorado Diminished Value Guide covers the claim process and key considerations for vehicle owners.
Colorado sits among several neighboring states, each with its own approach to diminished value claims. You can compare claim rules in Wyoming, Nebraska, Kansas, Oklahoma, New Mexico, and Utah.