Diminished Value Claims in Oregon

Disclaimer: This guide provides general information about Oregon diminished value claims, is not legal advice, and does not create an attorney-client relationship. Laws change, so consult a licensed Oregon attorney about your specific situation before taking action.

What is Diminished Value?

Diminished value refers to the reduction in a vehicle's market value after it has been damaged and repaired. Even with perfect repairs, a vehicle that has been in an accident is typically worth less than an identical vehicle with no accident history. This loss in value occurs for several reasons:

• Market Perception: Buyers are willing to pay less for vehicles with accident history
• Disclosure Requirements: Accident history is typically disclosed on vehicle history reports like Carfax
• Quality Concerns: Despite good repairs, buyers worry about hidden damage or future problems
• Resale Challenges: Vehicles with accident history take longer to sell and command lower prices

Types of Diminished Value

There are three primary types of diminished value:

1. Immediate Diminished Value: The difference in resale value immediately after an accident, before repairs are made. This is rarely applicable in claims since insurance typically pays for repairs.
2. Inherent Diminished Value: The most common type, this refers to the loss in value due simply to the fact that the vehicle now has accident history, even after proper repairs. This is what most diminished value claims seek to recover.
3. Repair-Related Diminished Value: The loss in value due to the quality of repairs, such as color mismatches, improper alignment, or use of aftermarket parts instead of OEM (Original Equipment Manufacturer) parts.

Diminished Value Claims in Oregon

Oregon law allows vehicle owners to recover diminished value from the at-fault driver's insurance company. However, there are important considerations for these claims:

Legal Basis for Claims

Oregon courts have established that diminished value is a recoverable element of damages. When another driver causes an accident, their liability insurance should compensate you for all losses, including:

• Cost of repairs
• Rental car or loss of use during repairs
• Diminished value of the vehicle

Eligibility Requirements

To pursue a successful diminished value claim in Oregon:

• Your share of fault must be 50% or less, with any recovery reduced by your percentage of responsibility
• The vehicle must have been repaired to industry standards
• The vehicle must have had significant value before the accident
• The damage must be substantial enough to affect market value
• You must file within the applicable statute of limitations (six years for property damage claims in Oregon)

Vehicles Most Likely to Have Significant Diminished Value

While any vehicle can experience diminished value, certain vehicles tend to lose more value after accidents:

• Newer vehicles (typically less than 7 years old)
• Luxury or high-performance vehicles
• Low-mileage vehicles
• Vehicles with clean history before the accident
• Vehicles with significant structural or frame damage

How to Document and Pursue a Diminished Value Claim

Successfully recovering diminished value requires proper documentation and a strategic approach:

Documentation Needed

Gather the following to support your claim:

• Accident report and photos of damage
• Repair invoices and documentation
• Vehicle history report showing no prior accidents
• Vehicle valuation before the accident (using sources like Kelley Blue Book, NADA, or Edmunds)
• Documentation of current market value for similar vehicles with and without accident history
• Professional diminished value appraisal (highly recommended)

Calculating Diminished Value

Several methods can be used to calculate diminished value:

1. Professional Appraisal: The most reliable method involves hiring a certified appraiser who specializes in diminished value claims. They will inspect the vehicle, review repair quality, and research comparable sales.
2. Market Comparison: Researching the difference in value between similar vehicles with and without accident history in your local market.
3. Formula-Based Calculation: Some use a percentage of the vehicle's pre-accident value based on damage severity, though this is less accurate than professional appraisals.

Dealing with Insurance Companies

Insurance companies often resist diminished value claims. Here's how to approach the process:

1. Notify the at-fault driver's insurance company of your intent to file a diminished value claim
2. Submit your documentation, including professional appraisal if available
3. Follow up in writing if you don't receive a response
4. Be prepared to negotiate, as initial offers are often low
5. Consider legal representation if the insurance company denies your claim or makes an unreasonable offer

Johnson Law, P.C.'s Experience in Diminished Value Claims

Diminished value claims can be complex and challenging to pursue without legal representation. At Johnson Law, we have extensive experience in this area and can help by:

• Connecting you with qualified diminished value appraisers
• Properly documenting your claim for maximum recovery
• Negotiating directly with insurance adjusters who handle these complex claims
• Filing litigation when necessary to recover fair compensation
• Handling your claim on a contingency fee basis (no recovery, no fee)