Diminished Value or Diminution of Value

Diminished Value or Diminution of Value
value of your car and you are likely insured for this
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If there is sufficient damage to your car you likely have a claim for diminution of value or diminished value.

Did you know that in Oregon if you are in an accident and your own insurance company repairs your vehicle (under your collision or comprehensive coverage) you are entitled to payment for the lower resale value of the vehicle?  (This lower resale value is called “diminished value” or “diminution of value.”)

For example, if you pull a Tiger Woods and drive into a fire hydrant and a tree all by yourself, your insurance company has to do more than fix your car: it has to pay for the diminished value or diminution of value of the car. Cars that have been in accidents are worth less than cars that have not. (You may think that it’s not the insurance company’s fault that you damaged your car, but that is beside the point. You pay for this type of insurance, and you should get what you have paid for when you need it.)

Think you may have a claim for diminished value or diminution of value?

And, if you think you have a claim like this, I would like to hear from you. In particular, I am looking for someone in the following circumstance:

  • Had an automobile insurance policy that was valid at the time of the accident;
  • The insurance company repaired the insured car (rather than declaring it a total loss);
  • The amount paid for repairs in conjunction with the accident was $1,000 or greater;
  • The automobile was less than 6 years old at the time of the accident;
  • The automobile had less than 90,000 miles at the time of the accident;
  • The automobile suffered frame damage, needed substantial bodywork or required other major repairs;
  • You still own the vehicle (desirable, yet not absolutely required);
  • You did not receive payment for diminished value or diminution of value of the vehicle.

If you are in a situation like this, please give me a call at (503) 222-7178.