I have a question regarding a "diminished value claim." Do all states honor this claim? Do you know if Colorado is a state that honors this claim? Should I contact my insurance company about the DOV claim if this is a first-party DOV claim?

You have little recourse for this kind of claim in most states, including Colorado. As you know, diminished value, or diminution in value, is the difference in value of your car before and after an accident once it's been repaired. Even if the auto body shop does a superb job putting the car back together, the car may not have the same resell value simply because of its accident history.

Insurance companies in most states aren't required to compensate you for diminished value on a first-party claim -- one you file with your own car insurance company.

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Policy language that exempts diminution in value for first-party property damage claims has been approved by insurance regulators for use in 45 states, Washington, D.C. and Puerto Rico. The endorsement has not been approved in Georgia, Kansas, and Maryland, Hawaii or North Carolina. Residents in those states should talk to their insurance companies or check with their state department of insurance to learn about the rules in such cases.

However, you might have better luck receiving compensation for diminution in value for a third-party claim -- one you file against another driver's insurance company when that driver was at-fault in an accident. Third-party claims might be payable on a case-by-case basis, depending on state law. Bear in mind, though, most courts have ruled that comprehensive and collision coverage limit liability to payments for property repairs and don't provide for payments for losses in value.

For more, see 'diminished value' car insurance claims get the wrecking ball.