Can I file a diminished value claim against my own insurer in Kentucky?

No — Kentucky limits DV recovery to third-party claims against the at-fault driver's insurer.

Does Kentucky use comparative or contributory negligence?

Kentucky uses the Choice no-fault rule.

KENTUCKY (KY)

Kentucky Diminished Value Claim — Recover $2,500 – $10,000

Kentucky is a Choice no-fault state with a 2 years for property damage. DV recovery is available against the at-fault driver's insurer. USPAP-compliant appraisal report delivered in 24 hours.

Get Your Free Estimate Order DV Report — $249

Fault Rule

Choice no-fault

Statute of Limitations

2 years for property damage

Typical Recovery

$2,500 – $10,000

Small Claims Limit

$2,500

Kentucky Diminished Value Law — What You Need To Know

Kentucky's choice no-fault system lets drivers opt out — but PIP never covered property damage, so DV recovery is unaffected. Louisville and Lexington dealer auctions support strong comparables.

Statute citation

KRS §413.125

Landmark case

Kentucky Farm Bureau v. Burton (Ky. App. 1996) — DV recoverable under tort.

First-party DV

❌ Not available

Third-party DV

✅ Allowed

Appraisal clause

Standard in most policies

Small claims limit

$2,500

Kentucky Filing Tip

Two-year statute is tight; combined with Kentucky's tendency to delay third-party claims, file the appraisal request inside 60 days of repair.

What Drives DV Settlements in Kentucky

Comparable sales of similar wreck-free vehicles in the same regional market, paired with a USPAP-compliant report citing repair severity and structural damage.

How to File a DV Claim in Kentucky

1
Complete repairs at a licensed body shop and obtain a complete itemized repair invoice with all OEM/aftermarket part designations.
2
Order a USPAP-compliant diminished value appraisal report grounded in Louisville-area comparable sales (TOP-DV delivers within 24 hours for $249).
3
Submit a written demand to the at-fault driver's insurer with the appraisal attached, citing KRS §413.125 and Kentucky Farm Bureau v. Burton (Ky. App. 1996).
4
If the carrier refuses or counters low, invoke the appraisal clause in writing.
5
Settlement typically reached within 4-10 weeks once a credible appraisal is on file.

Escalation: Kentucky Department of Insurance

File a complaint with Kentucky Department of Insurance

https://insurance.ky.gov/ppc/CHFS_FileComplaint.aspx

If the at-fault carrier refuses to negotiate after receiving a USPAP-compliant appraisal, file simultaneously with the state DOI — this regulatory pressure routinely accelerates settlement.