calm-badger-5213h ago

Insurer keeps rejecting my diminished value claim but won't tell me WHY — anyone dealt with this?

So I was rear-ended about four months ago — totally not my fault, the other driver admitted it on the spot and her insurer accepted liability without a fight. My SUV got repaired and honestly the body shop did a great job. Visually it looks fine.

Here's the thing though: my vehicle is barely 18 months old and has pretty low mileage. I know a Carfax hit from a structural repair tanks resale value, so I started looking into a diminished value (DV) claim right away.

I called the at-fault driver's insurance and they actually encouraged me to get an independent appraisal done. So I paid out of pocket for a certified appraiser — not cheap — who put together a detailed report showing exactly how much market value I'd lost because of the accident history.

Submitted everything. Three weeks later: denied. Their reason? I "failed to meet the burden of proof."

Okay fine. I went and got two written offers from dealerships showing they'd pay less for my car than a comparable clean-history vehicle. Resubmitted everything together.

Denied again. Same boilerplate language about burden of proof.

Every time I call and ask them to explain specifically what would satisfy the burden of proof, I get a different vague answer or just get transferred around. It feels like they're moving the goalposts on purpose.

I've already filed a complaint with my state's insurance commissioner. I've also told the insurer in writing that I'm prepared to take this to small claims court if needed.

Is that really my only move here? Has anyone actually gotten a DV claim paid out after this kind of runaround? I'm not trying to get rich — I just want fair compensation for a real loss.

8 replies

Most helpful first

plain-marten-2603h ago
I went through almost the exact same loop last year. The 'burden of proof' denial language is basically their stall tactic — they use it hoping you'll give up. What finally moved things for me was sending a formal demand letter via certified mail and explicitly mentioning small claims court with a specific dollar amount. Suddenly they were a lot more interested in talking.
- clever-finch-9403h ago
  I'll be honest with you because I used to sit on the other side of this. DV claims are the ones adjusters are quietly trained to resist hardest because most people don't push back. The 'burden of proof' response is intentionally vague — there's no internal standard they'll ever put in writing because then you could actually meet it. Filing with your state insurance commissioner is genuinely the right move and it does get attention internally. Keep that complaint open and document every single call with date, time, and the name of whoever you spoke to.
silent-fox-1333h ago
They are absolutely doing this on purpose. Insurers bank on people getting exhausted and walking away. Two independent appraisals PLUS dealer buy offers is more documentation than most people ever submit and they still said no — that tells you everything about their good faith here.
brave-crow-8513h ago
A few things worth knowing: diminished value claims against the other driver's insurer (third-party claims like yours) are handled differently than first-party claims, and the rules vary by state. Some states have specific DV statutes that give you clearer legal footing. The complaint with your insurance commissioner is smart — it creates an official record. If you do go to small claims, bring printed copies of every denial email, your appraisal report, and both dealer offers organized chronologically. Judges in small claims respond well to organized documentation.
- keen-owl-6263h ago
  Stop calling them. Everything in writing from here on out — email or certified mail only. Phone calls are unrecorded he-said-she-said. Send a final written demand with a deadline and state clearly you'll be filing in small claims if they don't respond. Then actually do it if they don't. Small claims is designed for exactly this kind of thing and you don't need a lawyer.
brave-bison-0413h ago
Not legal advice, but I'll say this: the pattern you're describing — encouraging you to get an appraisal, then denying it without a clear standard — can look a lot like bad faith claims handling depending on your state's laws. Worth at least a free consultation with a PI attorney who handles property damage claims. Many will tell you pretty quickly whether you have leverage. The complaint you filed is a good foundation either way.
swift-raven-3293h ago
Quick question — did you get your independent appraisal from someone who specifically certifies DV claims, or just a general auto appraiser? I'm not doubting you at all, just wondering if there's a credentialing argument they might be hiding behind. Some insurers get picky about appraiser methodology (like whether they used a formula-based approach vs. a market comparison approach). Not saying your claim isn't valid — just trying to figure out if that's the hidden goalpost.
clear-swift-6413h ago
The fact that you have a paper trail this solid actually puts you in a stronger position than most people who try DV claims. You've done the work. Small claims court honestly isn't that intimidating for something this documented — and winning there sends a message too.