Diminished Value Calculator
Estimate the loss in resale value of your vehicle after an accident using the industry-standard 17c Formula.
Note: This is an estimate based on the "17c" formula used by many insurance carriers.
What is Diminished Value?
Diminished value is the difference in your vehicle's market value before an accident and its value after it has been fully repaired. Even if the repairs are perfect, a vehicle with an accident history (recorded on reports like CARFAX) is worth less than an identical vehicle with a clean history. This "stigma" translates to a financial loss for the owner.
How the 17c Formula Works
The "17c Formula" is the most common method insurance companies use to calculate these claims. It originated from a legal case (State Farm v. Mabry) in Georgia and includes several steps:
- The 10% Cap: The maximum amount an insurance company will pay is usually capped at 10% of the vehicle's retail value.
- Damage Multiplier: A coefficient assigned based on the severity of the damage, ranging from 0.00 (cosmetic) to 1.00 (severe structural).
- Mileage Multiplier: A coefficient that reduces the claim based on the vehicle's age and use. High-mileage vehicles are considered to have less value to lose.
Imagine a vehicle worth $30,000 with 35,000 miles that suffered moderate damage.
1. Base Loss (10%): $3,000
2. Damage Multiplier (Moderate – 0.50): $3,000 * 0.50 = $1,500
3. Mileage Multiplier (0.80 for 35k miles): $1,500 * 0.80 = $1,200.
The estimated diminished value claim is $1,200.
Why You Should File a Claim
If you were not at fault in the accident, the at-fault driver's insurance is generally responsible for compensating you for this loss in value. Most people forget to ask for diminished value, focusing only on the repair costs. However, when you go to trade in or sell your car in the future, the lower offer you receive is money out of your pocket.
Factors That Influence Your Claim
While this calculator provides a standard estimate, several factors can change the outcome:
- Vehicle Age: Cars older than 7-10 years often qualify for $0 in diminished value.
- Accident History: If the car had a prior accident, the value lost in the second accident is significantly lower.
- State Laws: Some states have specific rules about who can claim diminished value and how it must be calculated.