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State law · OR
Autoloss is based here in Oregon, and you are welcome to visit our office if you would rather meet in person.
Yes against the at-fault driver: Oregon cases have long measured vehicle damage as the drop in value, and ORS 20.080 can add attorney fees for claims up to $10,000. Against your own insurer, it depends on the policy. Gonzales v. Farmers (2008) required payment where a policy's 'repair' promise was not met, but insurers may exclude diminished value, and at least one major current Oregon policy form does.
Claim against the at-fault driver
Allowed by case law
Claim against your own insurer
Depends on your policy
Time limit to sue for property damage
6 years
Insurance regulator
Reviewed by Monica Fisher, Owner, Licensed Auto Appraiser and Court Expert Witness — appraisal perspective, not legal advice
Last reviewed
Oregon law
Third-party claim
Allowed by case law
Oregon Supreme Court cases hold that the measure of damage to a vehicle is the difference between its value just before and just after the accident, and they recognize that repairs may not make a car as good as before (Goff v. Elde, 1930; Murphy v. Hawthorne, 1926). These cases are old, but no later Oregon appellate decision rejecting post-repair diminished value was found. Claims for $10,000 or less can carry attorney fees under ORS 20.080.
Authority: Goff v. Elde, 132 Or 689, 288 P 212 (1930); Murphy v. Hawthorne, 117 Or 319, 244 P 79 (1926); Powers v. Quigley, 212 Or App 644, 159 P3d 371 (2007); ORS 20.080; ORS 31.600(1)
First-party claim
Depends on your policy
Gonzales held that when a policy promises to 'repair', the insurer must restore the car to its pre-loss physical condition or pay the resulting diminished value. It followed Dunmire (1941). The court left open whether 'stigma' alone is covered and said insurers may exclude diminished value. The current State Farm Oregon car policy (9837C) excludes any post-repair reduction in value. Read your own policy. If the policy excludes it, a first-party claim may still argue that the repairs were incomplete.
Authority: Gonzales v. Farmers Insurance Co. of Oregon, 345 Or 382, 196 P3d 1 (2008); Dunmire Motor Co. v. Oregon Mutual Fire Insurance Co., 166 Or 690, 114 P2d 1005 (1941); State Farm Personal Car Policy Booklet, Oregon Policy Form 9837C (2025), physical damage exclusion 20; ORS 742.061(1)
Case law
Oregon Supreme Court · 2008
345 Or 382, 196 P3d 1 (2008)
Under a collision policy letting the insurer 'repair or replace', 'repair' means restoring the vehicle to its pre-loss physical condition. If repairs did not do that, the insured is entitled to a genuine repair or compensation for the diminished value. The court affirmed the Court of Appeals (210 Or App 54, 150 P3d 20 (2006)) and reversed summary judgment for the insurer.
Oregon Supreme Court · 1941
166 Or 690, 114 P2d 1005 (1941)
Under a policy limiting liability to 'what it would then cost to repair or replace the automobile', the insured's recovery was not limited to the cost of repair. The court upheld an award of the difference between pre-accident and post-accident value, less the deductible, following Rossier v. Union Automobile Ins. Co., 134 Or 211 (1930).
Oregon Supreme Court · 1930
132 Or 689, 288 P 212 (1930)
In a negligence case, the true measure of damages for a damaged automobile is the difference in its value just before and immediately after the accident. The court noted that cost of repairs may be only one element, since a car may not be repaired as good as it was before.
Status: treatment unclear: Old but not found to be overruled. No modern Oregon appellate opinion squarely deciding post-repair 'stigma' diminished value against a tortfeasor was found.
Oregon Supreme Court · 1926
117 Or 319, 244 P 79 (1926)
Restated the rule that the measure of damages for injury to personal property is the difference between its value immediately before and immediately after the injury. The court noted that an instruction limited to repair costs favored the defendant because it left out depreciation from the collision.
Status: treatment unclear: Old authority; see note on Goff v. Elde.
Oregon Court of Appeals · 2007
212 Or App 644, 159 P3d 371 (2007)
In a third-party claim for a properly repaired car's diminished value brought with an ORS 20.080 demand, a defendant's later ORCP 54 E offer of judgment that exceeded the award limited the plaintiff's attorney fees to those incurred before the offer.
ORS 20.080: Attorney fees for certain small tort claims
Covers tort claims for injury to person or property where the amount pleaded is $10,000 or less. The written demand must go to the defendant and the known insurer at least 30 days before filing. For property it must include repair documentation, a repair estimate, or a written estimate of the before/after difference in value. No fees if the defendant tendered at least the amount awarded. Subsection (6) excludes contract actions.
ORS 742.061(1): Attorney fees in action on an insurance policy
Applies if an insurer does not settle within six months after proof of loss is filed and the insured sues on the policy. If the recovery exceeds any tender, the court awards the insured reasonable attorney fees. This, not ORS 20.080, is the fee statute for first-party claims.
ORS 12.080(1), (4): Six-year limitation: contracts; injury to personal property
An action for injuring personal property (subsection 4) and an action on a contract (subsection 1) must be commenced within six years.
ORS 31.600(1): Comparative negligence
A claimant's fault does not bar recovery for injury to property if it is not greater than the combined fault of the others; damages are reduced by the claimant's percentage of fault.
ORS 806.070(2): Motor vehicle liability insurance minimums
At least $25,000 per person and $50,000 per accident for bodily injury, and $20,000 for property damage.
State Farm Personal Car Policy Booklet, Oregon Policy Form 9837C (2025), physical damage exclusion 20: Example of a current Oregon policy excluding diminished value (policy form, not a statute)
Physical damage coverage excludes any reduction in the value of a covered vehicle after it has been repaired, compared with its value before the damage. The same booklet promises repair estimates with parts sufficient to restore the vehicle to its pre-loss condition.
Researched September 30, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in OR
Autoloss is based here in Oregon, and you are welcome to visit our office if you would rather meet in person.
We serve Oregon from your repair order, photos and records, the same way we serve every state. A typical diminished-value appraisal is $250–$350, typically 24–48 hours after all required information is received.
Other states
The claim review is free: we look at your situation and tell you whether an appraisal is likely to help. The appraisal itself is a paid report. We help from start to finish, including a custom demand letter, and our support staff is a phone call away throughout the process.
