Travelers diminished value claims in Michigan
Michigan is one of the few jurisdictions that does not allow the standard third-party diminished value claim, and that is true whichever carrier insured the at-fault driver. What remains against Travelers is narrow, and it is set out honestly below.
Travelers claims: 1-800-252-4633
Filing deadline
3 years
Mich. Comp. Laws § 600.5805(2)
Small claims limit
$7,000
Your fallback if they refuse
Shared fault
Pure comparative negligence
How Travelers approaches these claims
LOW CONFIDENCE. No reputable source, state DOI market-conduct report, court opinion, or established consumer/legal publisher, was found documenting how Travelers settles third-party DV. The carrier-specific 'DV guides' that dominate search results are AI-generated marketing pages and were not relied on. What is verifiable: third-party DV is a state tort-law question, so outcomes vary by state (Georgia requires DV assessment after the 2001 Mabry decision; most states allow third-party DV as property-damage tort damages). Washington's insurance regulator states plainly that an insurer 'doesn't automatically pay you for diminished value' and it is 'subject to proof.'
Why Michigan is different
No. An insurer's obligation to 'repair or replace' does not require payment for post-repair diminution in value where the policy expressly limits coverage to the lesser of actual cash value or cost of repair. Driscoll v. State Farm Mut. Auto. Ins. Co., 227 F. Supp. 2d 696 (E.D. Mich. 2002). Michigan collision policies carry that limitation.
What remains
Your options in Michigan
Read the rule first
Michigan does not allow the standard third-party diminished value claim, so the usual demand-letter route against Travelers is not available. The routes below are what remain.Check the narrow routes
Michigan is the national outlier and the answer is essentially no. MCL 500.3135(3) abolishes tort liability for vehicle property damage; the only surviving route is the mini-tort, capped at $3,000 for accidents after July 1, 2020 and limited to damages 'not covered by insurance', your collision deductible or out-of-pocket repair cost, not inherent resale-value loss. No Michigan decision allows third-party DV, and first-party DV is foreclosed by Driscoll. Do not send a DV demand to the at-fault carrier expecting payment. Use the mini-tort for your deductible, file in district court small claims, and act within 3 years.Document everything anyway
If one of the narrow routes fits your facts, it will turn on documentation: the repair invoice, the history report, and a supported valuation of the loss.
FAQ
Travelers in Michigan
Does Travelers pay diminished value claims in Michigan?
Michigan is one of the few states that does not allow a standard third-party diminished value claim, against Travelers or any other carrier. No. An insurer's obligation to 'repair or replace' does not require payment for post-repair diminution in value where the policy expressly limits coverage to the lesser of actual cash value or cost of repair. Driscoll v. State Farm Mut. Auto. Ins. Co., 227 F. Supp. 2d 696 (E.D. Mich. 2002). Michigan collision policies carry that limitation.
How long do I have to file against a Travelers driver in Michigan?
Michigan allows 3 years from the date of the accident for a vehicle property damage claim (Mich. Comp. Laws § 600.5805(2)). The deadline is on filing suit, not on sending a demand letter, and negotiating with an adjuster takes weeks, so start well before it.
What if Travelers denies the diminished value claim?
1) Put the dispute in writing to the assigned claim professional and demand a written explanation of any DV denial or offer. 2) Ask for that person's supervisor or unit manager by name (get it via 1-800-252-4633). 3) Escalate to Travelers Consumer Affairs, One Tower Square, Hartford, CT 06183, the complaint address published on travelers.com/contact-us. 4) File a state DOI complaint. 5) Sue the at-fault driver in small claims. Note: the policy appraisal clause is a first-party remedy; as a third-party claimant you have no contract with Travelers and generally cannot invoke it. Beyond the carrier's own process, you can file a complaint with the Michigan Department of Insurance and Financial Services (DIFS), and court remains available for the limited claims Michigan does recognise.
This page combines our researched profile of Travelers (reviewed 2026-07-28, confidence low) with the Michigan rules table (reviewed 2026-07-28). Full sources and citations are on the Travelers page and the Michigan claim page. It is general information, not legal advice, and practices change; verify before relying on it.
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