Diminished Value Calculator

Diminished Value Calculator (17c Formula)

Severe structural damage Major damage to structure/panels Moderate damage to structure/panels Minor damage to structure/panels No structural damage (Cosmetic only)

Estimated Diminished Value

$0.00

function calculateDiminishedValue() { var marketValue = parseFloat(document.getElementById('marketValue').value); var mileage = parseFloat(document.getElementById('mileage').value); var damageMod = parseFloat(document.getElementById('damageSeverity').value); if (isNaN(marketValue) || isNaN(mileage) || marketValue = 0 && mileage = 20000 && mileage = 40000 && mileage = 60000 && mileage = 80000 && mileage = 100000) { explanationDisplay.innerText = "Cars with over 100,000 miles typically have $0 diminished value according to the standard 17c formula."; } else { explanationDisplay.innerText = "This estimate uses the standard insurance '17c Formula' which considers a maximum 10% value cap, your specific damage level, and vehicle mileage."; } }

What is Diminished Value?

Diminished value is the reduction in a vehicle's market value that occurs after it has been involved in an accident and subsequently repaired. Even if a car is restored to its pre-accident condition, the fact that it has an accident history (recorded on reports like CARFAX) often makes it less desirable to potential buyers, resulting in a lower resale price.

Understanding the 17c Formula

The 17c formula is a widely recognized method used by insurance companies to calculate diminished value claims. It was established following a Georgia Supreme Court case (State Farm v. Mabry). It follows four distinct steps:

• The 10% Cap: The maximum amount an insurance company will pay is 10% of the vehicle's NADA or KBB retail value.
• Damage Multiplier: A modifier is applied based on the severity of the damage (ranging from 0.00 for no damage to 1.00 for severe structural issues).
• Mileage Multiplier: A modifier is applied based on the car's odometer reading (newer cars receive a higher multiplier).

Example Calculation

Imagine a car worth $30,000 with 25,000 miles and moderate damage.
1. Base Loss (10%): $3,000
2. Damage Mod (0.50): $3,000 x 0.50 = $1,500
3. Mileage Mod (0.80): $1,500 x 0.80 = $1,200 total diminished value.

Types of Diminished Value Claims

There are three primary categories of diminished value:

1. Inherent Diminished Value: The most common type. It assumes the repair was done perfectly, but the car is worth less simply because it has an accident history.
2. Repair-Related Diminished Value: Occurs when repairs are performed poorly (e.g., mismatched paint or low-quality parts).
3. Immediate Diminished Value: The difference in resale value immediately before the accident and immediately after, before repairs are made.