Property Damage and Diminished Value After a Florida Crash

The injury claim gets the attention, but the car is the problem you face the next morning. Florida’s property damage rules are separate from its no-fault injury rules, and they include a claim most drivers never hear about: diminished value.

Written by the Florida Injury Team Legal Content Team · Reviewed for accuracy by our network of licensed Florida attorneys · Learn about our editorial process

Whose insurance pays for the car

• The at-fault driver’s property damage liability (PDL). Florida requires every driver to carry at least $10,000 in PDL. If the other driver caused the crash, their insurer pays to repair or replace your car, up to their limit.
• Your own collision coverage. If you have it, your insurer pays regardless of fault, minus your deductible, and then seeks reimbursement from the at-fault driver’s insurer. This is usually faster.
• Uninsured motorist property damage. Not standard in Florida; check your policy.

PIP does not pay for vehicle damage. Many Florida drivers carry only PIP and PDL, so when a driver with no collision coverage is hit by a driver with a $10,000 PDL limit, the limit is often exhausted by a modern car.

Repair or total loss

The insurer compares the repair estimate to the car’s actual cash value. Florida law requires a total loss when the cost of repair reaches 80% of the value (Florida Statute 319.30). On a total loss the insurer owes the actual cash value, plus sales tax and title and registration fees on the replacement, not what you owe on the loan. Gap insurance covers the difference between the value and the loan balance if you bought it.

Rental car and loss of use

If the other driver was at fault, their insurer owes you a comparable rental car or the cash value of the loss of use of your vehicle for a reasonable repair period. Your own policy pays for a rental only if you bought rental reimbursement coverage. Keep receipts for rideshare or transit if no rental is provided.

Diminished value: the claim most people miss

A repaired car with an accident on its history report is worth less than the same car with a clean history. That difference is diminished value, and in Florida it can be claimed from the at-fault driver’s insurer as part of the property damage claim. Your own collision policy generally excludes it. To pursue it you need a diminished value appraisal from a qualified appraiser, the repair records, and a written demand. Insurers rarely offer it unless asked. It is most significant on newer and higher-value vehicles.

Deadlines and tips

• Property damage claims from negligence generally must be filed within two years for crashes on or after March 24, 2023.
• Photograph the damage before repairs and keep every estimate and invoice.
• You may choose your own repair shop; the insurer cannot require a specific one.
• Do not sign a property damage release that also releases the injury claim. Read it, or have the firm read it, before signing.

The firm we refer you to handles the injury claim. Many firms also assist with the property damage claim or point you to an appraiser for diminished value, so ask.