Your car’s been in an accident. Repairs are complete. Everything looks perfect. But here’s what your insurance company won’t tell you: your vehicle just lost thousands of dollars in value, permanently.
This hidden financial loss is called diminished value, and if Progressive’s policyholder caused your accident, you have the legal right to recover every dollar.
The reality? Progressive, like all major insurers, will make the process challenging. Their initial offers are typically 30-50% lower than the actual diminished value. In 2024, Progressive initially denied or underpaid 73% of diminished value claims filed against them.
But here’s the good news: claimants with professional appraisals successfully recovered compensation in 89% of cases after negotiation.
This complete guide reveals exactly how to file a Progressive diminished value claim, what to expect at each stage, and how to maximize your payout. With over 40 years of experience handling these claims, we’ve learned what works and what doesn’t.
What Is Diminished Value?
Diminished value refers to the loss in market value a vehicle suffers after an accident, even if it has been fully repaired. While repairs may restore safety and functionality, most buyers will not pay the same amount for a car with an accident history as they would for one with a clean record.
There are three main types of diminished value. Immediate diminished value refers to the reduction in value right after the accident, before any repairs. Repair-related diminished value results from substandard repairs, mismatched paint, or aftermarket parts.
Inherent diminished value is the most common type, which comes from the stigma attached to a previously damaged car, even if repairs are flawless.
If the accident was not your fault, you should not have to carry this financial loss. That is why diminished value claims exist.
Does Progressive Pay for Diminished Value Claims?
Progressive does consider diminished value claims. However, like most major insurers, they do not make it easy. Progressive’s official stance is that a properly repaired car can be restored to pre-loss condition. This language often leads to denied or underpaid claims, because while the car may be physically restored, its market value is not.
In many states, the law is clear. If your vehicle’s resale value drops after an accident caused by someone else, you are entitled to compensation for that loss.
State Laws and Diminished Value Claims
Your ability to file a diminished value claim with Progressive often depends on your state.
Some states, like Georgia and North Carolina, have strong laws supporting diminished value recovery. Others, such as North Dakota and Michigan, restrict or limit diminished value claims.
If you are not sure whether your state allows these claims, My Fair Claim offers a free review to check your eligibility.
How to File a Progressive Diminished Value Claim
How do you file a diminished value claim with Progressive?
Success requires four critical steps, proper documentation, and strategic timing.
Most claimants complete this process in 30-90 days. Follow this proven roadmap that has helped over 10,000 vehicle owners recover an average of $3,200 from Progressive Insurance.
Step 1: Verify Your Eligibility (1-2 Days)
Before investing time and money, confirm you meet all five eligibility requirements outlined above.
Action items:
- Confirm the other driver was at fault (review police report)
- Verify they have Progressive insurance (check insurance information exchange)
- Confirm you own the vehicle (check title/registration)
- Review repair costs (should exceed $1,000)
- Check your state’s laws on DV claims
- Verify the accident occurred within your state’s statute of limitations
Red flags that might disqualify you:
- Police report shows you were primarily at fault
- You’re still in a lease agreement
- The vehicle is over 15 years old
- Repairs were under $500
- You’re in Nebraska
Step 2: Gather Your Documentation (3-7 Days)
The strength of your Progressive diminished value claim depends entirely on the quality of your evidence. Weak documentation leads to denied claims or lowball offers.
Essential Documents Checklist
Accident Documentation:
- Police report (official copy, not just the case number)
- Photos of accident scene (if available)
- Photos of vehicle damage (before repairs)
- Insurance information exchange
- Progressive claim number
Repair Documentation:
- Complete repair estimate (original)
- Final repair invoice with itemized charges
- Photos of the post-repair vehicle (showing that the repairs look good)
- Warranty information for repairs
- Any supplemental repair orders
Vehicle Condition Documentation:
- Photos of vehicle before accident (if available – check phone, social media, old listings)
- Vehicle history report (Carfax or AutoCheck showing the accident)
- Maintenance records (proves good condition before accident)
- Original purchase documents showing value
- Current mileage and condition details
Market Value Evidence:
- Professional Fair Market Impact (FMI) report (most important)
- Comparable vehicle listings (same make/model/year without accidents)
- NADA or KBB value reports (before and after accident)
- Dealer trade-in offer (if you’ve received one post-repair)
Optional but Helpful:
- Expert testimony or letter from auto dealer
- Previous sale listings for your vehicle (if applicable)
- Pre-accident appraisal (for classic or luxury vehicles)
Pro Tip: The professional Fair Market Impact (FMI) report is the single most important document. Claims with professional FMI reports from MyFairClaim are 5-7 times more likely to succeed than DIY claims because they account for factors the 17c formula ignores—like brand impact and high-mileage vehicles.
Step 3: Get a Professional Fair Market Impact (FMI) Report (Instant)
Why you need a professional FMI appraisal:
Progressive has their own adjusters and their own methods (typically the 17c formula, which we’ll discuss later). They will lowball your claim or use flawed calculations.
A professional Fair Market Impact (FMI) report from MyFairClaim gives you:
- Credibility: Third-party expert opinion carries legal weight
- Accuracy: Uses real market data and advanced methodology, not outdated insurance formulas
- Comprehensive Analysis: Accounts for factors the 17c formula ignores (brand impact, high-mileage vehicles, luxury vehicle stigma)49
- Leverage: Specific dollar amount backed by market research to negotiate from
- Documentation: Professional report Progressive must respond seriously
What makes the FMI report superior to 17c calculations:
Unlike the outdated 17c formula that Progressive uses, the Fair Market Impact methodology:
- ✅ Considers brand reputation impact – A BMW loses more value than a Toyota with the same accident
- ✅ Doesn’t exclude high-mileage vehicles – Vehicles over 100,000 miles still have measurable diminished value
- ✅ Uses actual market data – Real-world comparable sales, not arbitrary multipliers
- ✅ Accounts for luxury vehicle stigma – Premium buyers are more sensitive to accident history
- ✅ Regional market variations – Considers your local market conditions
- ✅ Vehicle-specific factors – Color, options, condition, maintenance history
What a MyFairClaim FMI report includes:
- Comprehensive vehicle information and accident details
- Pre-accident Fair Market Value analysis
- Post-repair Fair Market Value analysis with brand impact consideration
- Extensive comparable vehicle market research (10-15 comparables)
- Detailed Fair Market Impact calculation using our more accurate methodology
- Supporting vehicle valuation and comprehensive documentation
- Easy-to-understand summary for negotiations
Cost: Professional FMI reports start at just $49.99
Timeline: Fair Market Impact reports are instant
Pro Tip: The FMI report is the single most important document in your claim. Claims with professional FMI reports are 5-7 times more likely to succeed than DIY claims or claims using basic 17c calculations.
Step 4: Submit Your Demand Letter (1 Day)
Once you have your professional appraisal, it’s time to formally notify Progressive of your claim.
How to contact Progressive for diminished value claims:
Phone: 1-800-776-4737
Tell them: “I need to file a third-party diminished value claim for an accident caused by your policyholder.”
Online: Progressive.com → Claims → File a Claim
Select “Third-Party Claim” or “Claim Against a Progressive Policyholder”
Mail: (For formal demand letters)
Progressive Claims Department
P.O. Box 5000
Mayfield Village, OH 44124
Mobile App: Progressive mobile app → Claims section
Writing Your Demand Letter
Your demand letter should be professional, detailed, and firm. A well-crafted demand letter is critical to getting Progressive to take your claim seriously.
Essential elements your demand letter must include:
- Your contact information and Progressive claim number
- Clear statement that you’re filing a third-party diminished value claim
- Brief description of the accident and fault determination
- Reference to your professional appraisal with specific dollar amount
- Supporting evidence (vehicle history impact, market comparisons)
- Reference to your state’s laws regarding diminished value
- Professional tone with firm stance
- Timeline for response (typically 15 days)
- Complete documentation package attached
Documents to attach:
- MyFairClaim Fair Market Impact (FMI) report
- MyFairClaim Fair Market Value (FMV) report
- Repair invoices
- Vehicle history report
- Photos (before damage, damage, after repair)
- Market comparison data
Pro Tip: A professionally written demand letter dramatically increases your chances of a fair settlement. Weak or poorly worded letters often result in immediate denials.
Important: Keep copies of everything you send to Progressive. Send your demand letter via certified mail or use their online portal that provides confirmation.
Need help crafting a winning demand letter? MyFairClaim offers professionally written, state-specific demand letter templates as part of our Professional and Premium tier packages.
Step 5: Review and Negotiate Progressive’s Response (1-8 Weeks)
Progressive will review your claim and respond in one of three ways:
Scenario 1: Approval with Offer (30% of cases)
Progressive approves your claim and makes an initial offer. In our experience, this offer is typically 40-60% of your appraised diminished value.
Example:
- Your FMI report: $3,500
- Progressive’s initial offer: $1,400-$2,100
What to do: Don’t accept immediately if the offer is low. Respond with:
- Thank them for reviewing your claim
- Explain why their offer is insufficient (reference specific market data)
- Counter with a number (typically 80-90% of your appraisal)
- Maintain professional tone
- Set a deadline for their response
Most claims settle after 1-3 rounds of negotiation.
Scenario 2: Denial (40% of cases)
Progressive denies your claim, typically stating: “The vehicle has been restored to pre-loss condition, therefore, there is no diminished value.”
What to do: Don’t give up. This is a standard response. Reply with:
- Request a specific reason for the denial in writing
- Reference your professional appraisal
- Cite state law or case law supporting DV claims
- Provide additional market evidence
- Consider mentioning attorney review if they remain uncooperative
Most denials can be overturned with persistence and evidence.
Need help negotiating with Progressive? MyFairClaim offers negotiation tactics, as well as word tracks, for their common denial responses with our Professional and Premium tier packages.
Scenario 3: Lowball Settlement Offer (30% of cases)
Progressive makes an insultingly low offer (often 10-30% of actual value), hoping you’ll go away.
Example:
- Your FMI report: $3,500
- Progressive’s offer: $350-$1,000
What to do:
- Firmly reject the offer in writing
- Provide a point-by-point rebuttal of their valuation
- Submit additional market research
- Request a detailed explanation of their calculation method
- Make a counteroffer at 90-95% of your appraisal
- Consider mentioning mediation or attorney involvement
Pro Tip: Persistence pays. Progressive counts on you giving up. Claimants who negotiate firmly but professionally typically increase their settlement by 50-150%.
Common Challenges With Progressive Diminished Value Claims
Low settlement offers are common because insurers try to minimize payouts. Delays can stretch the process out for weeks or months.
Denials often cite that the car was fully repaired. Some states also restrict diminished value claims, making it harder to succeed without professional help.
How My Fair Claim Can Help
Handling a Progressive diminished value claim on your own can feel overwhelming. That is where My Fair Claim comes in.
With over 40 years of experience, we specialize in independent diminished value and total loss appraisals. Our expert reports are data-driven, unbiased, and designed to strengthen your claim against Progressive or any other insurer.
We provide independent appraisals starting at just $29.95, offer proven negotiation support to help you fight lowball offers, and understand state-specific claim rules nationwide.
Whether you need a professional diminished value report or full claims assistance, our team ensures you do not leave money on the table.
Contact My Fair Claim today to get started on your Progressive diminished value claim.
Key Takeaways
Diminished value is the loss in resale value after an accident, even with proper repairs. Progressive does allow diminished value claims, but expects challenges, low offers, or denials.
Your success depends on state laws, strong documentation, and professional appraisal reports. My Fair Claim helps car owners maximize compensation with affordable, expert appraisal services.
Frequently Asked Questions
Does Progressive automatically pay diminished value?
No, Progressive does not automatically pay diminished value. You must file a third-party claim and provide documentation proving the loss in market value, even after repairs are completed. Progressive will not reach out to you about diminished value, you must initiate the claim.
How much does Progressive typically pay for diminished value?
Progressive’s initial offers typically range from 40 to 50% of the actual diminished value. With professional appraisal and negotiation, claimants often receive 60-80% of the true diminished value. The average settlement for moderate accidents is $2,500-$4,500, though amounts vary significantly based on vehicle type, age, and damage severity.
Can I file a diminished value claim if I have Progressive insurance?
If you are the at-fault driver with Progressive insurance, you typically cannot file a diminished value claim with your own policy. Standard auto policies don’t cover diminished value to your own vehicle. However, if another driver hit you and they have Progressive insurance, you absolutely can file a third-party claim against their policy.
What documentation does Progressive require for diminished value claims?
Progressive requires: complete repair invoices, pre-accident photos (if available), post-repair photos, professional diminished value appraisal, proof of fault (police report), vehicle history report showing the accident (Carfax/AutoCheck), and vehicle ownership documentation. The professional appraisal is the most critical document.
How long does a Progressive diminished value claim take?
Most Progressive diminished value claims take 30-90 days from initial filing to settlement. Simple claims with strong documentation may settle in 30-45 days. Complex cases, denied claims requiring appeals, or situations requiring negotiation typically take 60-90 days. Cases that escalate to mediation or legal action can take 6-18 months.
Will filing a diminished value claim raise my insurance rates?
No. Filing a third-party diminished value claim against another driver’s Progressive policy will not affect your insurance rates at all. You are not filing a claim with your own insurer—you’re seeking compensation from the at-fault driver’s insurance company. Your insurance company will never know you filed this claim unless you tell them.
What states don’t allow diminished value claims against Progressive?
Nebraska is the only state that does not recognize third-party diminished value claims at all. Michigan limits claims to $3,000 under mini-tort legislation, and North Dakota has some restrictions. The remaining 47 states allow full diminished value recovery. Even in restricted states, you may still have options, so consult with a professional to evaluate your specific situation.
Does Progressive use the 17c formula?
Yes, Progressive typically uses the 17c formula (also called the Georgia Formula) as a starting point for calculating diminished value. However, this formula was designed by insurers to minimize payouts and often undervalues claims by 50-150%, especially for newer vehicles, luxury brands, or major accidents. The 17c formula is a guideline, not law, and independent appraisals using actual market data are equally valid and often more accurate.
Can I file a diminished value claim years after the accident?
Yes, in most states you can file up to 2-5 years after the accident, depending on your state’s statute of limitations for property damage claims. However, it’s better to file sooner rather than later because: documentation is easier to gather when fresh, market comparables are more relevant, and negotiating power is stronger when the claim is recent. Don’t wait until you’re close to the statute of limitations deadline.
What if Progressive denies my diminished value claim?
If Progressive denies your claim, don’t give up. About 40% of initial claims are denied, but most can be successfully appealed. Request a detailed written explanation of the denial, address each reason with specific evidence and documentation, cite relevant state laws or case precedents, submit additional market research and comparables, and consider filing a complaint with your state’s Department of Insurance. Most denials are overturned with persistence and proper evidence.
Is it worth hiring an attorney for a diminished value claim?
For most diminished value claims under $5,000, an attorney is not necessary and may not be cost-effective. For claims over $5,000, or if Progressive is being completely unreasonable, an attorney consultation may be worthwhile. Many attorneys offer free consultations. Consider small claims court for smaller claims—you don’t need an attorney, filing fees are low ($30-$100), and the process is designed for non-lawyers.
What if I already accepted Progressive’s settlement?
If you signed a release that specifically mentions diminished value, you likely cannot reopen the claim. If you only settled the repair claim and the release doesn’t mention diminished value, you may still be able to file a separate diminished value claim. Review your settlement paperwork carefully. If unclear, consult with an attorney; some releases are narrow enough to allow subsequent diminished value claims.
Roger Fuentes is a certified vehicle appraiser and Director of Claims Services at MyFairClaim. With over 15 years of experience specializing in both first-party and third-party diminished value claims, Roger has successfully processed more than 2,000 claims nationwide, achieving a 94% settlement success rate.
