Even after flawless repairs, a vehicle with an accident history rarely commands the same price on the open market. Car buyers often pay less for a vehicle once it carries an accident record, even when repairs are perfect. The gap between its pre-crash worth and post-repair resale price is called diminished value.
North Dakota’s one-sentence roadblock
Unlike many states, North Dakota bars drivers from collecting diminished-value damages. Under Section 32-03-09.1, recoverable property damage is confined to the “reasonable” repair bill and the “reasonable” worth of being without the vehicle; the statute leaves out any compensation for the car’s post-repair market drop. This confirms that the statute leaves no room for diminished-value recovery in either first-party or third-party claims.
What you can seek
Earlier court opinions hinted that diminished value might be recoverable, but the Legislature closed that door by adopting Section 32-03-09.1. But, you can seek repair costs. Body-shop labor, paint, parts and related taxes. You can also seek loss of use damages. These are the reasonable rental-car or alternate-transport expenses while the vehicle is in the shop.
Statute of limitations
Property-damage lawsuits, including vehicle-repair disputes, must be filed within six years under North Dakota’s general limitations period for injury to property. Missing that deadline bars any recovery, even for allowed items such as repairs or loss of use.
Third-party versus first-party claims
This bar on diminished-value recovery holds no matter if you seek payment from your own carrier or the other motorist’s insurer. Since this is a ban based on state law, it does not matter how you file your claim or who you file it against, diminished value is simply not an allowable recoverable cost in our state.
Maximizing your claim
Document repairs thoroughly. Keep estimates, invoices and photos. They form the backbone of any property-damage demand. Track rental receipts. Loss-of-use payments require proof of actual expenses or a verifiable daily value for similar transportation. And, act promptly. Begin negotiations well before the six-year window closes to preserve leverage.
Finally, read your policy. Some carriers market special endorsements that mimic diminished-value coverage, but such riders are rare in North Dakota.
North Dakota law caps crash-related vehicle compensation at repair bills and loss-of-use costs. Even the most dramatic post-repair hit to resale price is legally irrelevant under state law. Understanding that limitation helps Fargo motorists focus on the damages they can actually recover and avoid wasting time pursuing a category the statute flatly disallows.