Most people involved in auto accidents, do not realize that Oklahoma is a diminished value state. Diminished Value is a loss in market value as a result of the vehicle being wrecked and repaired due to an accident. Diminished value can be calculated in a number of different ways and insurance companies will make “low ball” offers for what they deem as market value of your vehicle without considering the value of the vehicle prior to being wrecked and repaired.
There are three types of diminished value that your case may fall under:
Inherent Diminished Value:
This type of diminished value refers to the loss of value of a vehicle simply because it has been in accident. Even after the vehicle has been fully repaired, it may still be considered less valuable than a car that has no accident history. This type of diminished value is the most common and most highly accepted.
Repair-Related Diminished Value:
A vehicle that experienced an accident and was not repaired properly may experience repair-related diminished value. Whether the car still has cosmetic damages or structural damages, it may experience loss in value due to incomplete repairs.
Immediate Diminished Value:
Right after a vehicle has experienced an accident, it may lose value even before the owner has the chance to make repairs. Immediate diminished value can be calculated as the difference in resale value of a vehicle before the damage occurred and the resale value before repairs have been made after damage has occurred.
The statute of limitations on diminished value claims in Oklahoma is 2 years. Oklahoma does not have uninsured motorist coverage for diminished value. Also, you cannot submit an Oklahoma diminished value claim if you are the “at fault” party in an accident. Even if your vehicle has no obvious damage you still have a legal obligation to disclose that it was involved in an accident to potential buyers.