But even if the mechanic does a bang-up job, your car will usually be worth less after a collision. The difference between the value of your vehicle pre-collision and post-collision is called the diminished value.

Thankfully, Oregon is a diminished value state, meaning you can claim your car’s diminished value after a not-at-fault accident for up to six years after the event.

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Oregon car accident laws

The three types of diminished value

There are three types of diminished value to consider when exploring your claim options in Oregon:

Immediate diminished value: This type of diminished value applies immediately after the accident, when you’ve made no repairs to your car.

Inherent diminished value: This type applies when your car’s value is still less than before the accident, even after sufficient repairs.

Repair-related diminished value: This type of diminished value applies when your car’s value drops post-accident because of subpar repairs. This could include anything from a bad paint job to less-than-satisfactory handiwork when replacing a front bumper, and everything in between.

Usually when dealing with diminished value in Oregon, we’re dealing with inherent diminished value—after repairs have already taken place. Going forward, diminished value as described in this guide refers to inherent diminished value, unless otherwise stated.

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Diminished value calculator: How to calculate your claim

What is the difference between diminished value and depreciation?

Diminished value and depreciation might sound like the same thing, but they’re very different. Depreciation occurs with the natural passage of time and prolonged use of your car. As time moves forwards and your mileage increases, your car becomes less valuable than when it was brand-new in the dealership. It’s an inevitable and unavoidable byproduct of car ownership.

On the other hand, diminished value isn’t natural, inevitable, or unavoidable. Rather, it occurs when your car’s current market value is suddenly reduced because of an accident. Even if your car undergoes repairs, returning a vehicle to the state it was in before the accident is challenging.

For example, imagine you’re shopping for a used 2015

Ford Focus

. There are two 2015 Focuses at your local used car dealership—both have 100,000 miles, but one has been in two accidents, while the other has never been in an accident. Both are from the same year and have the same mileage, but the second car’s vehicle history negatively impacts its resale value.

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Understanding ACV for car insurance

What is the difference between a diminished value claim and a diminished value appraisal?

A diminished value appraisal is a key step you’ll have to take before making a diminished value claim. To successfully file a diminished value claim for your vehicle, you’ll first need to prove that you have experienced economic loss from the accident and figure out exactly how much that loss is. The only way to do this is by hiring a Diminished Value Expert to appraise the current value of your car.

It’s possible to get an idea of your exact loss in dollars by using Kelley Blue Book’s market value estimates, but you’ll want your car properly appraised by an expert for the purposes of filing a diminished value claim.

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How to determine the retail value of your used car

How to file an Oregon diminished value claim

Filing a diminished value claim in Oregon is pretty similar to filing any other insurance claim. However, the process is much easier if you do some of the important work and documentation upfront.

The first step is to make sure you’re eligible for a diminished value claim in Oregon. You’ll have to fulfill the following criteria if you want to file this type of claim:

You were

not at fault in the accident

You own your vehicle (i.e. you do not lease or finance your car)

The at-fault party cannot cover the diminished value through

property damage liability insurance

, or the driver was an uninsured motorist

You can assign a dollar amount to the diminished value of your car

Oregon doesn’t have any statutes governing diminishing value, but the state has excellent case law covering this area. This means that the above requirements may change as the law develops, and there are no hard-and-fast rules about the kind of car you can claim for. However, it’s usually not worth your time to claim for vehicles that have been in accidents before, are over 7 years old, or where your economic loss is nominal.

Ultimately, the at-fault insurance provider will make the final call on whether you’re able to make a successful third-party diminished value insurance claim.

Once you’ve had your vehicle appraised and are sure you satisfy the requirements laid out above, you can start the claim process. Here’s what you’ll need to do to file a diminished value claim:

Have your vehicle appraised by a Diminished Value Expert: it’s best practice to leave the appraisal process to the experts so that you can prove your economic loss to an exact dollar value. Bring your car to a Diminished Value Expert to get a precise diminished value number submitted to the insurance company.

Submit your claim. If the at-fault driver is insured, submit your claim through their insurance company. However, if an uninsured motorist hit you, you will not be able to make a diminished value claim. Since collision coverage specifically excludes diminished value on most insurance policies, you can have your vehicle repaired, but the diminished value will not be accounted for.

Wait for a response. The insurance provider will need to comb through documents and weigh in on a few factors before making a decision. You’ll have to wait for the adjuster’s response before being sure that your claim has been approved.

Following these steps doesn’t automatically guarantee approval. If your claim gets denied and you believe it should have been approved, reach out to a personal injury attorney to start a claim in an Oregon small claims Court. Legal fees can be hefty though, so make sure that the claim is worth filing in court before proceeding.

The 17c formula: free diminished value calculator

The 17c formula sounds cryptic, but it’s actually pretty straightforward. This is the formula many experts use when determining a car’s diminished value after getting into a collision or accident. It’s not a formula per se, as it’s not exact, but it can help you ballpark your vehicle’s lost value and whether submitting a claim is worth your time.

First things first—you’ll need to know the value of your vehicle pre-accident and consider its age, make, model, mileage, and condition. If you’re not sure where to start, Kelley Blue Book’s market value tool is a great resource. Then, multiply the car’s value by .10 (or 10%) to get the base loss value.

From there, you’ll need to use two different multipliers to consider your vehicle’s mileage and damage. You’ll use the following multipliers for damage:

1 if the car has structural damage

0.75 if the car has major panel or structural damage

0.5 if the car has moderate panel or structural damage

0.25 if the car has minor panel or structural damage

0 if the car has no structural damage

Once you’re finished calculating the damage, take your number and multiply it by one of the following applicable numbers:

1 if your mileage is between 0 and 19,999

0.80 if your mileage is between 20,000 and 39,999

0.60 if your mileage is between 40,000 and 59,999

0.40 if your mileage is between 60,000 and 79,999

0.20 if your mileage is between 80,000 and 99,999

0 if your mileage is above 100,000

It’s important to remember that while the 17c formula is helpful, the best way to determine the diminished value of your car is by hiring an expert for a diminished value appraisal.

What is the statute of limitations for a diminished value claim in Oregon?

In Oregon, drivers have up to six years to file a diminished value claim following an accident. Your claim will be automatically rejected if you file it after six years have passed since the incident.

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How long do you have to file a claim?

The bottom line

Oregon is a diminished value state, meaning you’re able to file a diminished value claim through the at-fault driver’s insurance or your own insurance provider, depending on the circumstances. Getting your car professionally appraised is a key factor in making a successful claim, and drivers with older cars, cars with high mileage, and cars that have been in accidents before have less success with diminished value claims.

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