Understanding the difference between third-party and first-party diminished value claims is critical for Arizona drivers. A third-party DV claim is filed against the at-fault driver's liability insurance — this is the standard DV claim that Arizona law clearly supports. If another driver caused your accident, their insurance is responsible for your repair costs, loss of use, and diminished value. These claims have a high success rate when properly documented.
A first-party DV claim, on the other hand, is filed against your own insurance company under your collision or comprehensive coverage. First-party DV claims are significantly more difficult in Arizona. Most auto insurance policies contain language that limits coverage to the "cost of repair or replacement" — which insurers argue does not include diminished value. While some courts in other states have ruled that first-party coverage must include DV, Arizona case law has generally not been as favorable for first-party claimants. If you were at fault or the other driver was uninsured, a first-party claim may be your only option, but expectations should be tempered.
At Orlando Auto Body, our free $450 Diminished Value Appraisal Packet is designed primarily for third-party DV claims, where the legal foundation is strongest and success rates are highest. If you were not at fault and the other driver has liability insurance, your claim is straightforward. If your situation involves a first-party claim, we can still provide documentation and refer you to attorneys who specialize in insurance disputes. The most important first step is understanding which type of claim applies to you. Call today for a free consultation.