Diminished value claims in Wisconsin

Claims against the at-fault driver

In Hellenbrand v. Hilliard (2004), the Wisconsin Court of Appeals held that when a plaintiff proves that repairs to personal property have not restored it to its pre-injury value, and shows harm from that loss, the plaintiff is entitled to damages for the proven lost value. The court rejected the insurer's argument that damages are always the lower of repair cost or the drop in value.

Wisconsin's civil jury instruction on repairable property, Wis JI-Civil 1804, now tells jurors to add that loss in value to the cost of repairs, and cites Hellenbrand. Hellenbrand also allowed loss of use for the whole time the car was out of service.

Claims under your own policy

In Wildin v. American Family (2001), the Wisconsin Court of Appeals held that a policy paying "the least of" actual cash value, repair cost, or the decrease in value allowed the insurer to pay for repairs only, even where frame damage meant the car could not be restored to its pre-collision value.

Hellenbrand later noted that Wildin turned on that particular policy wording and does not govern claims against the at-fault driver.

Filing deadline

Wisconsin gives three years for an action, not arising on contract, to recover damages for injury to property caused by or arising from an accident involving a motor vehicle (Wis. Stat. 893.52(2)). Other property damage claims have six years under 893.52(1), so the motor vehicle rule matters.

That is the deadline for filing suit. A Wisconsin attorney can confirm how it applies to your dates.

How diminished value claims tend to go in Wisconsin

Under Wis. Stat. 628.46, a claim is overdue if not paid within 30 days after the insurer receives written notice of the loss and its amount, and overdue payments bear interest.

Wisconsin's rule on unfair claim practices treats prompt action as action within 10 days of a claim communication (Wis. Admin. Code Ins 6.11(4)).

Many insurers answer a diminished value request with a formula rather than a market study. The best known is the 17c formula, which came out of the Georgia class actions over first-party claims that followed State Farm v. Mabry; its name comes from paragraph 17(c) of an injunction in one of them. It starts from a capped share of the car's value before the crash, then reduces it with damage and mileage modifiers. A law-firm survey notes it was built for that class action and has not been formally adopted for general use.

Adjusters commonly ask for proof that the repaired car is worth less, not only proof that it was damaged. Records that tend to matter: the final repair invoice and photos, the estimate showing any structural or frame work, the vehicle history report entry, and written market evidence such as dealer quotes or listings for the same car with and without an accident history.

Lost value is easiest to show once repairs are finished, because the value after repair is what gets compared with the value before the crash.

If you have a complaint about claim handling

The Wisconsin Office of the Commissioner of Insurance takes consumer complaints about how an insurer handled a claim. File with the Wisconsin Office of the Commissioner of Insurance.

Next steps

• How Reclaim's diminished-value check works
• Estimate a figure with the diminished value calculator
• How to file a diminished value claim
• Diminished value claims in Illinois
• Diminished value claims in Missouri
• Diminished value rules in every state