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In Georgia, the principle of diminished value applies to vehicles and property.

Since property diminishes in value after it has been damaged in an accident, it can become a problem when reselling your car or home.

To avoid this problem, Georgia’s diminished value law allows you to file a diminished value claim with your insurance company to recoup lost value resulting from an accident.

However, you must meet certain requirements to succeed in a diminished value claim.

A Georgia injury attorney can help you determine whether your claim qualifies under GA diminished value law.

How to Qualify for a Diminished Value Claim in GA

Georgia law requires insurance companies to pay the lost value of your vehicle or property when you make a diminished value claim.

Insurance companies cannot increase your premium or cancel your policy because of a claim.

Under Georgia’s diminished value law, you can file a claim even when you were at fault in a car accident.

However, several factors could disqualify you from filing a diminished value claim in Georgia.

Vehicle Market Value and Age

You may not qualify for a GA diminished value claim if your vehicle has a market value of less than $7,000.

Additionally, your vehicle must be less than ten years old to qualify.


If your vehicle has a salvage or rebuilt title, you may not qualify for a diminished value claim.


To qualify, your vehicle must not have excessive mileage.

Crash History

You may be disqualified from a diminished value claim if your vehicle has been in multiple crashes with extensive damage.

It is important not to misstate your vehicle’s crash history because buyers and insurance companies can check it through companies like CarFax.

Release of Liability Form

You won’t qualify for a diminished value claim in GA if you have signed a release of liability form.

Statute of Limitations

You will be disqualified from pursuing a diminished value claim if the statute of limitations (time) for filing a claim has passed.

In Georgia, the statute of limitations is 4 years.

Calculating Diminished Value

There are three steps that you should take to calculate diminished value in Georgia.

First, you need to determine the market value of the property. Second, find the current value by reducing the market value based on the vehicle or home’s current condition.

Finally, subtract the current value from the market value to get an estimate of the diminished value.

You can also consult a professional diminished value appraisal company or personal injury lawyer to assist you. 

Why an Attorney Should Help with Your GA Diminished Value Claim

Even if you think you qualify for a diminished value claim, you should consult with a Georgia injury attorney to help you file it. 

Dealing with insurance companies can be difficult.

They may disagree with you about whether your claim qualifies or how much it is worth. In fact, they are famously known for significantly undervaluing your claim. 

Additionally, they are experts in negotiation and can be manipulative.

Unphased by their tactics, personal injury lawyers know how to work with insurance companies to achieve maximum compensation.

At Pritchard Injury Firm, we will meet with you to determine whether your claim qualifies for diminished value compensation, and if it does, help you file a claim.

We will work with your insurance company to ensure that you receive the amount of compensation you deserve under Georgia’s diminished value law.

Contact us today to schedule a free consultation.

Author Photo

Zach Pritchard

Zach Pritchard received his undergraduate degree from Kennesaw State University where he received a degree in Management. Mr. Pritchard continued his educational career and attended John Marshall Law School in Atlanta, Georgia where he received his law degree.

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