Oregon
Diminished Value Overview
In Oregon, a vehicle involved in a not at fault accident may lose market value even after repairs are completed. When another driver is responsible for the accident, Oregon law allows you to pursue compensation for that loss in value from the at fault driver’s insurance company as part of your property damage claim. Oregon recognizes diminished value claims when the loss is properly documented.
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01
Statute of Limitations
Oregon allows two years from the date of the accident to pursue a diminished value claim.
02
Third-Party Claims
Diminished value claims can be pursued against the at fault driver’s liability insurance when another driver caused the accident.
03
First-Party and Uninsured Motorist
Most first party policies in Oregon exclude diminished value, but uninsured motorist property damage (UMPD) coverage may apply if you carry it.
04
Small Claims Court Limit
Oregon small claims court allows diminished value claims up to $10,000.
Oregon Diminished Value Law
Oregon law recognizes that when a vehicle is damaged by another party’s negligence, the injured owner is entitled to be restored to the same market value the vehicle held prior to the loss. When repairs do not fully restore a vehicle’s pre loss value, recovery of the remaining diminution in value is permitted as part of a third party property damage claim.
Mock v. Terry, 41 Or. App. 633, 599 P.2d 1365 (1979)
The Oregon Court of Appeals held that where repairs do not restore damaged property to its former condition and value, the injured party is entitled to recover the difference between the property’s value before the loss and its value after repairs. The court made clear that payment of repair costs alone is insufficient when a measurable loss in market value remains.
Gonzales v. Farmers Insurance Co., 345 Or. 382, 195 P.3d 207 (2008)
Oregon courts have also reaffirmed the general principle that damages for injury to personal property are intended to make the injured party whole. Where damage results in a permanent loss in value, compensation is not limited solely to physical repairs when those repairs fail to restore pre loss market value.