California diminished-value demand letter template
General information, not legal advice. This site is not a law firm. This template is a starting point, so change it to fit your facts. If your claim involves injuries, a government vehicle, or a large amount of money, think about getting professional advice.
Before you send it
- Wait until repairs are finished. You need the final repair invoice and a post-repair value.
- Get your number. Usually that's a written appraisal comparing pre-crash value to post-repair value.
- Send it to the at-fault driver's insurer and reference the claim number. Keep a copy, and send it in a way you can prove (email with the adjuster, or certified mail).
- Why a letter matters: California Courts says you must ask the other side for the money before filing in small claims. Ask for the money
The template
Copy everything between the lines. Replace every [BRACKET]. Delete the optional lines that don't apply.
[YOUR FULL NAME]
[STREET ADDRESS]
[CITY, CA ZIP]
[PHONE] · [EMAIL]
[DATE]
Sent by [email to ADJUSTER EMAIL / certified mail, tracking # ______]
[INSURANCE COMPANY NAME]
Attn: [ADJUSTER NAME], Claims Department
[INSURER ADDRESS]
Re: Diminished value claim
Claim number: [CLAIM #]
Your insured: [AT-FAULT DRIVER NAME]
Date of collision: [DATE OF CRASH]
Location: [CITY / STREET, CA]
My vehicle: [YEAR MAKE MODEL TRIM], VIN [VIN], mileage at time of crash [MILES]
Dear [ADJUSTER NAME]:
I'm writing to make a claim for the diminished value of my vehicle, which was damaged in the collision above caused by your insured.
1. What happened. On [DATE OF CRASH], your insured [BRIEF, FACTUAL DESCRIPTION, e.g., "rear-ended my stopped vehicle at the intersection of ___ and ___"]. [OPTIONAL: A police/CHP report was made, report #____.] [OPTIONAL: Your company accepted liability on [DATE].]
2. Repairs. My vehicle was repaired at [SHOP NAME] and the work was completed on [DATE]. The repairs included [MAIN REPAIRS, e.g., "rear bumper reinforcement, quarter panel, trunk floor (structural)"]. The final repair cost was $[AMOUNT]. [OPTIONAL: Of that, $[AMOUNT] remains unpaid.]
3. Lost value. Even after proper repairs, my vehicle is worth less than it was before the collision because of its accident and repair history. According to the attached appraisal from [APPRAISER NAME] dated [DATE], the vehicle's value immediately before the collision was $[PRE-LOSS VALUE] and its value after repairs is $[POST-REPAIR VALUE], a loss of $[DV AMOUNT].
Under California law, when a vehicle is repaired but is still worth less than before, the measure of damages is the reasonable cost of repairs plus the difference between the vehicle's value immediately before the harm and its value after repairs (Civil Code §3333; CACI No. 3903J).
4. Amount requested.
| Item | Amount |
|---|---|
| Diminished value | $[DV AMOUNT] |
| Appraisal fee [OPTIONAL] | $[FEE] |
| [OPTIONAL: Loss of use, [#] days × $[DAILY RATE] for a comparable rental] | $[AMOUNT] |
| [OPTIONAL: Unpaid repair balance / other out-of-pocket costs] | $[AMOUNT] |
| Total | $[TOTAL] |
5. Response requested. Please respond in writing within 15 calendar days of receiving this letter, consistent with Cal. Code Regs., tit. 10, §2695.5(b). If you deny any part of this claim, please put the denial and your reasons in writing (tit. 10, §2695.7(b)(1)) and include any valuation or formula you relied on.
If we can't resolve this claim, I may file a complaint with the California Department of Insurance and/or file a small claims case against your insured.
Enclosed:
- [ ] Diminished value appraisal ([APPRAISER], [DATE])
- [ ] Final repair invoice from [SHOP]
- [ ] Photos of the damage before repair
- [ ] [OPTIONAL] Police/CHP report
- [ ] [OPTIONAL] Rental receipts or comparable rental rate quotes
- [ ] [OPTIONAL] Dealer trade-in quotes
Sincerely,
[SIGNATURE]
[YOUR NAME]
Tips for filling it in
- Stick to the facts. No insults, threats, or guesses about fault. Say what happened and what you're asking for.
- Loss of use (optional line): California's jury instruction measures it as "the reasonable cost to rent a similar" vehicle "for the amount of time reasonably necessary to repair or replace" it. CACI No. 3903M. Only include days you can explain.
- Don't sign a release that says "full and final" unless you're satisfied that it covers everything you're owed.
- Keep a log of every call: date, name, what was said.
If they don't respond or the offer is too low
- Follow up in writing and reference your first letter's date.
- If they used a formula like "17c," read The 17c formula and why it isn't California law.
- Complain to the California Department of Insurance: CDI — Getting Help.
- Small claims: individuals can sue for up to $12,500, the filing fee is $30–$100, and you can't have a lawyer represent you in court. You'd typically sue the at-fault driver. California Courts — Small claims
- Watch the clock: generally 3 years from the crash to sue over damage to your car (CCP §338(c)(1)). Government vehicles have much shorter claim deadlines.
Related
- What diminished value is and when CA drivers can claim it
- The 17c formula and why it isn't California law
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Published · Last reviewed