When an accident scars a vehicle’s history, buyers often pay less, even after flawless repairs. That gap, called crash depreciation or diminished value, raises a thorny question in Montana: Who pays for it?
Even perfect bodywork cannot erase accident records on services such as Carfax. The resale markets discount repaired vehicles because future owners fear hidden problems.
What your insurance policy says matters most
Montana statutes do not force every insurer to cover crash depreciation for a repairable car. Instead, coverage hinges on insurance contract language. Many policies exclude diminished value outright.
State law does require full reimbursement when a car is totaled under the Montana Total Loss Statute. For vehicles that can be fixed, the broader Montana Vehicle Code, Title 61, leaves insurers and policyholders to negotiate. No published Montana case squarely compels payment for diminished value, yet local advocates note that strong documentation sometimes persuades carriers to settle.
How to prove a loss in value
Owners who pursue payment must show the difference between pre-crash market value and post-repair value. Appraisals, comparable-sale data and detailed invoices form the backbone of a claim. There are common valuation formulas, but carriers evaluate evidence according to their own terms. If in a lawsuit a judge or jury would need to parse both.
Start by reviewing your policy’s detailed wording. Many contracts include provisions that expressly exclude compensation for diminished value. Second, after a car accident, gather your evidence early. Independent appraisals carry more weight when obtained soon after repairs finish. Finally, expect a negotiation. Even cooperative adjusters will typically analyze odometer readings, past damage history and regional sale comparisons before approving any payout. Montana does not guarantee payment for crash depreciation, but well-prepared drivers can still recover the loss when policy terms allow and evidence supports the claim.