Updated November 2026. Reviewed by Richard W. Taylor.
You can file a diminished value claim in Oregon against the at-fault driver’s insurance company, and in some cases under your own policy. Diminished value is the resale value your car loses because it now has an accident history, even after quality repairs. The Oregon Supreme Court held in 2008 that if an insurer does not or cannot restore your car to its condition before the loss, it must pay for the diminished value, unless the policy excludes it. Here is how a diminished value claim in Oregon works, the deadline, and how to file one.
Key takeaways
- Oregon diminished value claims can go against the at-fault driver’s insurance company.
- Oregon measures car damage by the loss in market value, and the cost of repairs can help prove it (Powell v. Hartman, 1978).
- Under your own policy, the Oregon Supreme Court held that an insurer that does not or cannot restore your car must pay diminished value (Gonzales v. Farmers, 2008), but many policies now exclude it in writing.
- Oregon insurers must offer uninsured motorist property damage coverage, which you can choose to buy.
- You have 6 years to sue for damage to your car, and Oregon small claims court hears claims up to $10,000.
Can you file a diminished value claim in Oregon?
Yes, against the driver who caused the accident. In Powell v. Hartman (1978), the Oregon Court of Appeals stated that the loss in market value is the standard for car damage, and that the cost of repairs may be enough to establish it. The same case shows why proof matters: the owner lost because there was no real evidence of the drop in market value. An independent appraisal provides that evidence.
Oregon is also one of the few states where your own policy may pay. In Gonzales v. Farmers Insurance Co. of Oregon (2008), the Oregon Supreme Court held that a policy promising to repair the car requires the insurer to restore its physical condition before the loss, and if it does not or cannot, it must compensate the owner for the diminished value. The court noted that insurers can write policies that exclude diminished value, and many do, so read your policy wording.
Oregon diminished value claims at a glance
| Item | Oregon |
|---|---|
| Claim against the at-fault driver’s insurer | Yes, third-party claim |
| How damage is measured | Loss in market value (Powell, 1978) |
| Claim under your own policy | Possible when repairs do not restore the car, unless the policy excludes it (Gonzales, 2008) |
| Uninsured motorist property damage | Insurers must offer it, ORS 742.510 |
| Deadline to sue for damage to your car | 6 years, ORS 12.080(4) |
| Small claims limit | $10,000, ORS 46.405 |
How to file a diminished value claim in Oregon
- Finish the repairs and keep the final repair bill, since the claim is based on it.
- Get the at-fault driver’s claim details: the insurer, the claim number and the adjuster.
- Get an independent appraisal. A documented appraisal shows your car’s value before and after, based on the repair bill, the actual damage and current retail market data for comparable cars with a clean history.
- Send a written demand with the appraisal to the at-fault driver’s insurer, and keep copies.
- Act within 6 years. If the claim does not settle, Oregon small claims court hears claims up to $10,000.
DVAC provides the appraisal report, the demand letter, claim strategy and guidance through resolution. You communicate with the insurance company directly, and we advise you on what to say and how to respond.
What if the Oregon insurer refuses to pay?
Ask the adjuster to explain the decision in writing and to respond to the figures in your appraisal. If your claim is under your own policy, ask the insurer to point to any language that excludes diminished value. If the claim still does not settle, Oregon small claims court hears claims up to $10,000 under ORS 46.405, and attorneys may appear only with the judge’s consent. For larger claims or legal questions, talk to an Oregon attorney. If your car was totaled instead, see our Oregon total loss guide and the Oregon total loss threshold.
Oregon diminished value case studies
See how Oregon owners documented their loss: a 2024 Lexus RZ 450e, a Mercedes-Benz Sprinter and a 2021 Dodge ProMaster.
Oregon diminished value questions
Is Oregon a diminished value state?
Yes, for third-party claims, and in some cases under your own policy (Gonzales v. Farmers, 2008).
How long do I have to file a diminished value claim in Oregon?
6 years to sue for injuring personal property under ORS 12.080(4).
Does my own insurance pay diminished value in Oregon?
It can, if the insurer does not or cannot restore your car and your policy does not exclude diminished value.
What is the small claims limit in Oregon?
$10,000.
Sources
- Gonzales v. Farmers Insurance Co. of Oregon, 345 Or 382, 196 P.3d 1 (2008) (CourtListener).
- Powell v. Hartman, 37 Or App 455, 587 P.2d 506 (1978) (CourtListener).
- ORS 12.080, six years for injuring personal property (Oregon Legislature).
- ORS 46.405 and 46.415, small claims ($10,000) and attorneys (Oregon Legislature).
- ORS 742.510, uninsured motorist property damage coverage (Oregon Legislature).
This page is general information, not legal advice. Diminished value rules can change and depend on the facts of your claim, so confirm current requirements with your state insurance department or an attorney.
