📍 Maryland · Third-Party + Mandatory UMPD DV · Berry v. Queen (2020) · MIA Bulletin 24-8

Maryland Diminished Value Claims — The Complete Guide.

Q: Can I recover diminished value in Maryland?

Yes, third-party and through UMPD (mandatory). Fred Frederick Motors v. Krause, 12 Md. App. 62 (1971), establishes third-party recovery. The 2020 amendment to § 19-509(c), Berry v. Queen (2020), and MIA Bulletin 24-8 (2024) establish mandatory UMPD coverage for DV.

Q: Does Maryland UMPD cover DV?

Yes, by statutory mandate. The 2020 amendment to § 19-509(c) and MIA Bulletin 24-8 (2024) require UMPD to include DV.

Maryland is one of the strongest UMPD-coverage states in the country. Berry v. Queen (2020), the 2020 amendment to § 19-509(c), and MIA Bulletin 24-8 (2024) together establish that UMPD MUST cover DV in Maryland — by statutory mandate. Fred Frederick Motors v. Krause (1971) controls third-party. The catch: pure contributory negligence (1% bars).

Recovery

Third-Party + Mandatory UMPD

Statute of Limitations

3 Years

Small Claims Limit

$5,000

Negligence Rule

Pure Contrib. (1% bar)

Why Maryland Is Different

Maryland's Statutorily Mandated UMPD DV Coverage.

Maryland is unique among the states we cover in mandating that UMPD coverage include diminished value. The 2020 General Assembly amended § 19-509(c) of the Insurance Article to explicitly include "property damage" within UMPD coverage. The Maryland Supreme Court in Berry v. Queen, 469 Md. 674 (2020), confirmed that UMPD must compensate for the full scope of property damage including DV. The Maryland Insurance Administration's Bulletin 24-8 (2024) operationalized this by directing insurers that DV is a category of damage UMPD must cover.

The result: Maryland has both a strong third-party recovery framework under Fred Frederick Motors v. Krause, 12 Md. App. 62 (1971), AND mandatory UMPD coverage for DV. Combined with a 3-year SOL under MD Code Cts. & Jud. Proc. § 5-101, the framework gives claimants meaningful recovery options. The friction: Maryland is one of only four jurisdictions in the country (along with North Carolina, Virginia, Alabama, and DC) that applies pure contributory negligence — 1% fault bars all recovery.

Maryland's UMPD DV mandate

MIA Bulletin 24-8 (2024): Maryland UMPD coverage is mandatory and statutorily required to include DV. Insurers cannot exclude DV from UMPD by policy language.

Maryland Case Law & Statutory Authority

Maryland Authority: Statute, Court, Bulletin

Maryland's framework rests on a 1971 Court of Special Appeals decision, a 2020 statutory amendment, a 2020 Supreme Court decision, and a 2024 MIA bulletin operationalizing UMPD DV coverage.

Fred Frederick Motors, Inc. v. Krause, 12 Md. App. 62 (1971)

Foundational Maryland third-party DV decision.

The Maryland Court of Special Appeals in Fred Frederick Motors v. Krause set out the foundational rule: "For repairable vehicles, if the plaintiff can prove that after repairs his vehicle has a diminished market value from being injured, then he can recover, in addition to the cost of repairs, the diminution in market value, provided the two together do not exceed the diminution in value prior to the repairs." This both-elements framework with gross-diminution cap remains controlling Maryland authority.

✓ Cite Fred Frederick Motors v. Krause for the both-elements standard. Subject to gross-diminution cap.

Md. Code Ann., Ins. § 19-509(c) (2020 Amendment)

Statutory mandate that UMPD include property damage and DV.

The Maryland General Assembly amended § 19-509(c) and (e) of the Insurance Article in the 2020 session to explicitly include references to "property damage." Section 19-509(c) now states that UM/UIM coverage "is required to compensate the policyholder for damages, subject to the policy limits, that the insured is entitled to recover from the owner or operator of an uninsured motor vehicle because of property damage." Because DV is a category of damage recoverable in tort, it falls within "property damage" under the statute.

✓ Statutory mandate. UMPD coverage cannot exclude DV in Maryland — Bulletin 24-8 confirms this.

Berry v. Queen, 469 Md. 674 (2020)

Maryland Supreme Court confirms UMPD's broad scope.

The Maryland Supreme Court in Berry v. Queen explained that "the purpose of the uninsured motorist statute is to protect innocent individuals injured by uninsured motorists as if the uninsured tortfeasor carried motor vehicle liability insurance in the amounts required by law." The Court acknowledged the 2020 legislation as a clarification of existing law. Berry establishes that UMPD coverage must be construed broadly to fulfill the statute's protective purpose.

✓ Berry confirms broad UMPD coverage including DV. Direct supreme court authority.

MIA Bulletin 24-8 (2024)

Maryland Insurance Administration operationalizes UMPD DV mandate.

The Maryland Insurance Administration's Bulletin 24-8 (2024) directs that "because diminution of value is a category of damages that the insured is entitled by tort law to recover from the owner or operator of an uninsured motor vehicle, UMPD coverage must include DV." The Bulletin reverses the MIA's earlier historic position (which had upheld DV exclusions in UMPD policies) and aligns regulatory practice with the 2020 statutory amendment and Berry v. Queen.

✓ Bulletin 24-8 is the operational guidance. Cite it directly in UMPD demand letters.

The 17c Formula in Maryland

Maryland Insurers Use 17c — The Statute Requires More.

Maryland's controlling framework — Fred Frederick Motors, the 2020 § 19-509(c) amendment, Berry v. Queen, and Bulletin 24-8 — is market-based, not formula-based. Major Maryland insurers default to 17c when calculating initial offers. A demand letter citing Fred Frederick Motors, the statute, and Bulletin 24-8 puts the claim on solid Maryland authority and signals you understand the UMPD mandate.

Run 17c to anticipate the insurer's initial offer, then quantify the gap to the both-elements market standard:

17c Formula Calculator

Run the 17c formula that most major auto insurers use to evaluate diminished value claims. Compare it against actual market-based loss.

Pre-Accident Market Value ($)

Damage Severity

Vehicle Mileage

Estimated Real Market Loss ($)

17c Formula Result

What the insurer will offer

Market-Based DV

What you're actually owed

Note: Industry-standard formula not adopted by any state DOI.

Get a Defensible Market-Based Appraisal — $149.99

How to File

Filing a Diminished Value Claim in Maryland.

Maryland's framework rewards documented claims pursued through the right path. Liability documentation matters most given pure contributory negligence. Then choose third-party or UMPD based on the at-fault driver's coverage.

Establish 0% fault. Maryland's pure contributory negligence rule means any fault finding bars recovery. Police report, witnesses, dashcam, traffic cameras.
Determine recovery path. Three options: third-party against at-fault driver's liability insurer, UMPD against your own policy if at-fault driver is uninsured/hit-and-run (mandatory UMPD DV per Bulletin 24-8), or both.
Complete repairs. Maryland DV is calculated post-repair. Document repairs comprehensively per Fred Frederick Motors's both-elements requirement.
Establish pre-accident market value. Maryland-market comparables — Baltimore, Annapolis, Frederick, Rockville, Bethesda, Silver Spring. Maryland's diverse markets produce strong comparable data.
Document post-repair value. Two written dealer trade-in offers post-repair plus comparable sales of similar Maryland vehicles with accident-history Carfax. Discount typically runs 12-22%.
Prepare a USPAP-compliant appraisal. The appraisal cites Fred Frederick Motors v. Krause, references § 19-509(c) and Bulletin 24-8 if pursuing UMPD, and uses Maryland-market comparables.
Send a demand letter. Quote Fred Frederick Motors's both-elements language. If pursuing UMPD, cite § 19-509(c) and Bulletin 24-8 for mandatory coverage. Send certified mail.
Allow 30 days for response. Maryland insurers familiar with the framework typically respond within 14-30 days. UMPD denials citing exclusions are now invalid post-Bulletin 24-8.
File a Maryland Insurance Administration complaint. insurance.maryland.gov handles complaints. MIA complaints add regulatory pressure, especially for UMPD denials given Bulletin 24-8.
Small claims for $5,000 or less; District Court above. Maryland small claims is capped at $5,000. District Court handles up to $30,000 with attorneys allowed.

Maryland's UMPD path is now mandated

Bulletin 24-8 (2024) reversed the MIA's historic position. UMPD coverage in Maryland now must include DV by statutory mandate. Insurers that exclude DV from UMPD are operating contrary to the regulatory bulletin and the 2020 statute.

FAQ

Maryland DV Questions

Can I recover diminished value in Maryland?

Yes, third-party and through UMPD (mandatory). Fred Frederick Motors v. Krause, 12 Md. App. 62 (1971), establishes third-party recovery. The 2020 amendment to § 19-509(c), Berry v. Queen (2020), and MIA Bulletin 24-8 (2024) together establish mandatory UMPD coverage for DV.

Does Maryland UMPD cover DV?

Yes — by statutory mandate. The 2020 amendment to § 19-509(c) requires UMPD coverage to include all property damage recoverable in tort, including DV. MIA Bulletin 24-8 (2024) operationalized this mandate. UMPD coverage is required with $250 deductible.

What is Maryland's statute of limitations?

Three years from the date of the accident under MD Code Cts. & Jud. Proc. § 5-101.

What is Maryland's small claims limit?

$5,000 in District Court small claims. District Court handles up to $30,000 with attorneys allowed.

What if I'm partially at fault?

Maryland applies pure contributory negligence — 1% fault bars all recovery. This makes liability documentation the most important step in any Maryland DV claim.

What's the practical value of MIA Bulletin 24-8?

The bulletin directs Maryland insurers that UMPD must cover DV. Insurers that exclude DV from UMPD coverage are operating contrary to the bulletin and may face regulatory action. Reference Bulletin 24-8 in UMPD demand letters and complaints.

Match Your Insurer

How does your insurer handle DV claims?

Each major insurer has distinct DV claim-handling patterns. We've documented the playbook for each.

State Farm GEICO Progressive Allstate USAA Liberty Mutual Farmers Nationwide All Insurers →

Mandatory UMPD DV. Use the Bulletin.

Maryland's UMPD mandate makes the state stand out for hit-and-run and uninsured-driver scenarios. A USPAP-compliant appraisal citing Fred Frederick Motors, § 19-509(c), and Bulletin 24-8 unlocks recovery.

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