Diminished value claims in Oklahoma

Claims against the at-fault driver

In Brennen v. Aston (2003), the Oklahoma Supreme Court held that Oklahoma law permits recovery for post-repair depreciation in value, and that the uniform jury instruction allowing the cost of repair plus depreciation, if any, correctly states the law. Where repairs do not restore the property to its pre-damage condition, repair cost plus diminution in value will ordinarily be the proper measure.

In Brennen, the expert testified that the repair work was excellent and the loss in value came from the nature and extent of the damage. The court affirmed the jury's award.

Claims under your own policy

No Oklahoma appellate decision was found on lost value after repair under an owner's own collision coverage. The policy wording controls.

For claims under your own policy, Oklahoma's claims statute requires the insurer to accept or deny within 60 days of proof of loss, or explain why more time is needed, and a denial has to cite the specific policy provision (36 Okla. Stat. 1250.7).

Filing deadline

Oklahoma gives two years for an action for taking, detaining, or injuring personal property (12 Okla. Stat. 95(A)(3)). That is a short deadline, so it is worth marking early.

That is the deadline for filing suit. An Oklahoma attorney can confirm how it applies to your dates.

How diminished value claims tend to go in Oklahoma

Oklahoma's Unfair Claims Settlement Practices Act requires a property and casualty insurer to acknowledge a claim within 30 days unless it pays within that time (36 Okla. Stat. 1250.6).

In Brennen, the expert found lost value despite excellent repair work.

Many insurers answer a diminished value request with a formula rather than a market study. The best known is the 17c formula, which came out of the Georgia class actions over first-party claims that followed State Farm v. Mabry; its name comes from paragraph 17(c) of an injunction in one of them. It starts from a capped share of the car's value before the crash, then reduces it with damage and mileage modifiers. A law-firm survey notes it was built for that class action and has not been formally adopted for general use.

Adjusters commonly ask for proof that the repaired car is worth less, not only proof that it was damaged. Records that tend to matter: the final repair invoice and photos, the estimate showing any structural or frame work, the vehicle history report entry, and written market evidence such as dealer quotes or listings for the same car with and without an accident history.

Lost value is easiest to show once repairs are finished, because the value after repair is what gets compared with the value before the crash.

If you have a complaint about claim handling

The Oklahoma Insurance Department takes consumer complaints about how an insurer handled a claim. File with the Oklahoma Insurance Department.

Next steps

• How Reclaim's diminished-value check works
• Estimate a figure with the diminished value calculator
• How to file a diminished value claim
• Diminished value claims in Texas
• Diminished value claims in Arkansas
• Diminished value rules in every state