Interesting Oregon Supreme Court Case

Here’s a new Oregon Supreme case which helps people whose cars have
been damaged and repaired at the expense of the applicable insurance company but
which even after repairs have been completed, are not worth as much as they were
before the accident. See: http://www.publications.ojd.state.or.us/S054486.htm

The case is GONZALES v FARMERS INSURANCE COMPANY OF OREGON,
FARMERS INSURANCE EXCHANGE; FARMERS GROUP, INC., and MID- CENTURY
INSURANCE COMPANY, 345 Or _________________ filed October 23, 2008
In the past, there has been general agreement that if the fair market value of a
car after the crash is less than before, there has been a diminution in value of the car.
This is true even if the car has been repaired. It simply has not been restored to it
condition prior to the collision. In Gonzales, there was a provision for repair which the
court interpreted to include restoration. In other words, if the repair does not result in
a complete restoration of the car to pre crash condition, the car is not really repaired
and the resulting diminution in value to the car remains a compensable loss for which
a defendants are liable under their policy.

Two points: The court did not decide whether the policy required payment for a
claim based solely on "stigma." Further the policy the court had before it did not
exclude diminished value coverage by the way it defined repair. Many insurance
policies do exclude it and in that case, the policy exclusion would prevail.