How to File a Diminished Value Claim in Oklahoma
Filing a diminished value claim in Oklahoma can help you recoup your losses after an auto accident—but it’s not always a straightforward process.
Written by Jennifer Justice
Reviewed by Shannon Martin
If you get into an accident, your vehicle loses value, whether it’s from a ding or totaled. You can file a diminished value claim with the at-fault party’s
car insurance
company to help you get back some of that loss.Since
Oklahoma
is a diminished value state, a car owner can file a diminished value claim after an accident. Let’s look at what that option means and how you can use this claim.Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversWhat is a diminished value claim?
If you are
less than 50% at fault
when you get into a car accident in Oklahoma, you can file a claim with the at-fault driver's insurer to help cover your repair and medical bills. Drivers in Oklahoma must have a minimum
of $25,000 per person / $50,000 per accident of bodily injury liability coverage
and at least $25,000 of property damage liability
per accident. But even if you get repairs and the insurance company helps pay those bills, the vehicle is still worth less after the accident. This difference is called diminished value, which just means how much money you lose for the resale value of your car. Fortunately, Oklahoma lets you file a claim for this diminished value.
The three types of diminished value
You have three types of diminished value to use in Oklahoma:
- Immediate diminished value: This is the value of the car before repairs are made
- Inherent diminished value: This is if the vehicle was repaired, but the value still goes down
- Repair-related diminished value: This is when a vehicle was repaired, but the repairs were done incorrectly or weren’t sufficient
Most of the time, “diminished value” really just means inherent diminished value–the repairs don’t completely recoup how much your car was worth before the accident. For our purposes, this will be the default meaning unless we point you in a different direction.
What is the difference between diminished value and depreciation?
When a car is driven, its value starts to go down (depreciate) since wear and tear begin immediately. Depreciation is the normal way a car’s value lowers as it ages, but diminished value means a sudden drop in the value thanks to an accident. Even if you get your vehicle back in good condition from the repair shop, the accident still damages the car in ways you might not even notice.
Let’s face it, if you make a sandwich and drop it on the floor, you can brush it off and take a bite–but you still dropped it on the floor. Even if they look the same, would you rather eat a sandwich that was or wasn’t dropped on the floor?
The same is true of a vehicle before and after an
accident
. If you’re considering two Ford F150s
with 50,000 miles on them, but one was repaired because of an accident, you will be less interested in buying it. What is the difference between a diminished value claim and a diminished value appraisal?
You’ll want to get a diminished value appraisal if you need to file a diminished value claim. The appraisal is step #1 since you must prove the vehicle’s value dropped and show by how much.
While Kelley Blue Book can help estimate your car’s market value, getting a professional appraisal is better. You can check with a used car dealer or someone similar.
How to file an Oklahoma diminished value claim
Just like any
insurance claim
, you’ll have some paperwork. You’ll need to do a few things before calling your insurance agent.First, you have to be eligible to file a claim. For Oklahoma, that means you have to fit the criteria:
- You are less than 50% at fault in the accident
- The vehicle is your property (i.e., not leased or financed)
- You have a specific dollar amount for the diminished value
- It must be less than two years after the accident
While meeting these criteria doesn’t automatically guarantee a win, you'll have a better chance. You need to file a claim with the at-fault driver’s insurance company, and the insurer gets to accept or deny the claim.
If you plan on filing a diminished value claim, you must do the following:
- Prove the vehicle lost value: While you can use the estimation method we’ll go over in a bit, you’ll have a better chance of making a claim if you have a professional estimate. Get a used car dealer or someone who is experienced with diminished value to give you an estimate. You also want to get several repair quotes.
- Submit a claim: If you have acollision coveragepolicy with your own insurer, you can try to get help from your insurance company, but it will be better to submit the claim to the at-fault driver’s insurer. This is where things like the police’s accident report and other documentation help.
- Wait for a decision: Like any insurance claim, you must wait on the insurer. It’s ultimately up to the insurance adjuster.
Keep in mind that filing a claim is not a guarantee–insurance companies can deny it. You can consider taking things to court if that happens, such as a small claims lawsuit, but you must decide if hiring a lawyer and taking those steps are something you want to do.
The 17c formula: free diminished value calculator
While a professional estimate is best, experts use the 17c formula to calculate a vehicle’s diminished value if it’s in an accident. You can use it as a starting point if you’re debating whether to put in the effort of filing a claim.
First, check the vehicle’s value before the accident based on the make, model, age, mileage, and condition. Kelley Blue Book or NADA (National Automobile Dealers Association) are common and reliable sources. Then break out those math skills (and maybe a calculator) and multiply the car’s value by .10 (or 10%) to find the base loss value (value X 0.10).
After calculating the base loss value, you’ll use two different multipliers based on the car’s damage and mileage. For damage, use the following:
Type of damage | Multiplier (multiply by) |
|---|---|
Structural damage | 1 |
Significant panel or structural damage | 0.75 |
Moderate panel or structural damage | 0.5 |
Minor panel or structural damage | 0.25 |
No structural damage | 0 |
Take the resulting number from that and multiply it by one of the following numbers:
Mileage range | Multiplier (multiply by) |
|---|---|
0 to 19,999 | 1 |
20,000 to 39,999 | 0.80 |
40,000 to 59,999 | 0.60 |
60,000 to 79,999 | 0.40 |
80,000 to 99,999 | 0.20 |
Above 100,000 | 0 |
Are you overpaying for your car insurance?
Compare quotes and find out in 45 seconds.
4.717k Ratings5M+Drivers Joined
7M+Cars Garaged
This will give you an estimate of how much value your vehicle lost as a result of the accident.
What is the statute of limitations for a diminished value claim in Oklahoma?
For Oklahoma, you have two years to file a diminished value claim after the accident. The claim will be rejected after this limit.
The bottom line
While Oklahoma lets you file diminished value claims, you will have a bit of an uphill battle. Insurance companies are slow to approve these kinds of claims, though having documentation at least helps. If you have a luxury or rare vehicle, especially with a professional appraisal, you will have a better chance of success.
Good luck!
MORE: Oklahoma Car Accident Laws
“Jerrywas easy to use, and they saved me a lot of money on my truck. I would definitely recommend them.” —Johannes T.
RECOMMENDED
Compare auto insurance policies
No spam or unwanted phone calls · No long forms
