Diminished value claims by state / Oregon
Diminished value claims in Oregon
By the Reclaim research team · Last updated · Legal review pending
In Oregon, the Supreme Court held in Gonzales v. Farmers Insurance (2008) that an auto policy's promise to repair means restoring the car to its pre-loss physical condition, and that lost value is a covered loss when the repair cannot do that. Against the at-fault driver, owners have claimed lost value as negligence damages, and Oregon's statute for injuring personal property sets six years to sue, though a two-year period may be argued to apply, so two years from the crash is the conservative date.
- Other driver at fault
- Claimed as negligence damages (Powers v. Quigley, 2008); proof must be solid (EAM Advertising v. Helies, 1998).
- Your own policy
- Yes if repair cannot restore pre-loss physical condition (Gonzales v. Farmers, 2008).
- Deadline to file suit
- 2 to 6 years
Claims against the at-fault driver
Oregon owners have pursued lost value after repair as part of an ordinary negligence claim. In Powers v. Quigley (2008), a driver who was rear-ended had her car repaired, made a written demand for its diminished value, and sued; the Oregon Supreme Court's decision concerned attorney fees, and the recoverability of the lost value was not contested.
We found no Oregon appellate decision squarely setting the measure of lost value after repair in a negligence case. Proof matters: in EAM Advertising Agency v. Helies (1998), a rental-car contract case, the Court of Appeals left in place the denial of a lost-value claim supported only by an affidavit that gave no basis for its figure.
Claims under your own policy
Oregon is one of the few states where an owner's own policy can cover lost value. In Gonzales v. Farmers Insurance Co. of Oregon (2008), the Oregon Supreme Court read "repair" in the policy to mean restoring the car to its pre-loss physical condition. When an attempted repair does not or cannot do that, the resulting lost value remains a covered loss. The court did not decide whether lost value from accident history alone, after a complete repair, is covered.
An older Oregon Supreme Court decision, Dunmire Motor Co. v. Oregon Mutual Fire Insurance Co. (1941), said there has not been a complete restoration unless there has been no loss in value after repair. The wording of your own policy still controls.
Filing deadline
Oregon gives six years for an action for taking, detaining or injuring personal property (Or. Rev. Stat. 12.080(4)). A separate two-year period covers injury to the rights of another not especially enumerated (Or. Rev. Stat. 12.110(1)).
We found no decision confirming which period governs a negligence claim for car damage, so two years from the crash is the conservative date to plan around. An Oregon attorney can confirm which applies to your dates.
How diminished value claims tend to go in Oregon
For tort claims of $10,000 or less, Oregon awards a winning plaintiff reasonable attorney fees if a written demand was made at least 30 days before suing, with exceptions such as a tender at least equal to the award (Or. Rev. Stat. 20.080). Powers v. Quigley (2008) applied that statute to a diminished value claim.
Oregon law lists unfair claim settlement practices, including not attempting, in good faith, to promptly and equitably settle claims in which liability has become reasonably clear, and failing to affirm or deny coverage within a reasonable time after proof of loss (Or. Rev. Stat. 746.230).
On a first-party request, the question under Gonzales is whether the repair restored the car to its pre-loss condition. Records of structural or frame work, and of anything the repair could not restore, matter here.
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.
If you have a complaint about claim handling
The Oregon Division of Financial Regulation takes complaints about insurance companies, including how a claim was handled. File with the Oregon Division of Financial Regulation.
Next steps
Questions
- Can my own insurer pay diminished value in Oregon?
- It can. Gonzales v. Farmers (2008) held that when the insurer cannot repair the car to its pre-loss condition, the resulting lost value is covered. Your policy's wording still controls.
- Can I claim diminished value from the at-fault driver in Oregon?
- Owners have claimed it as negligence damages (Powers v. Quigley, 2008), though no Oregon appellate decision squarely sets the measure. The proof has to be solid: in EAM Advertising v. Helies (1998), an unsupported figure was not enough.
- How long do I have in Oregon?
- Or. Rev. Stat. 12.080(4) sets six years for injuring personal property, but a two-year period in 12.110 may be argued to apply, so two years is the conservative date. An Oregon attorney can confirm which applies.
- Does Reclaim handle the claim for me?
- No. Reclaim does not contact your insurer or act for you. This page is general information, not legal advice, and you stay in charge of your claim.
Check your Oregon diminished value for free
If you kept the car after repairs and the other driver's insurer is handling the claim, the free check gives you an objective figure. It is not a recovery target.
- Who was at fault, and whether the repairs are finished.
- Roughly what the car was worth and what the repairs cost.
- Then your name and number, and the repair invoice.
This page is general information about Oregon law, not legal advice. Laws and court decisions change. For advice on your own claim and dates, talk with a Oregon attorney.