According to formula 17c, to calculate the decrease in the value of your car, you must take the value of your vehicle and multiply it by a maximum limit of 10%. Next, you would apply a damage-based damage multiplier to your car and a mileage multiplier based on your mileage. Use websites other than NADA to supplement the fair market value of your vehicle. Websites such as Kelley Blue Book may present different results than NADA.
In addition, use a third party to obtain a physical inspection of the damage to your vehicle. A third-party damage assessment can be used to negotiate according to the third step of Formula 17c. Once you've calculated the value of your vehicle, you'll need to apply the base value loss to the sales value estimated by NADA or KBB. Formula 17c multiplies the value of the car by.
Insurers usually apply this 10% limit, and it's the maximum amount you can expect the insurance company to pay on your claim. . This formula was first used in a Georgia claims case involving State Farm and its name derives from the place where it appeared in the court records in this case (paragraph 17, section c.). Formula 17c was approved for use in that particular case, and insurance companies in general soon realized the tendency to reach a relatively low value with that calculation.
As a result, the formula was widely adopted as an insurance standard, even though it only applied to that case of Georgia claims. Buyers will be able to view their car's history of repairs and accidents, as well as the decline in the value of their car. If, after calculating the decline in the value of your car both ways, there is a big discrepancy between the numbers, you may be in a position to negotiate a better deal. This is what the calculation would look like for this vehicle using the diminished value formula of 17c.
You can file a reduced value claim against the insurance company of the person who was at fault for the accident if you can show that the resulting damage reduced the value of your car. Understanding how insurers calculate the decrease in value will help you negotiate optimal compensation. You must file a reduced value claim when you have a car accident in which the other party is at fault, to recover the decline in value of your car. If you are looking for a simple way to calculate the diminished value to get a basic idea of what your loss may be, first determine the book value of your car.
This results in an adjusted figure for the decrease in value based on the insurer's determination of damages. Be prepared to go to small claims court if the at-fault party's insurance company refuses to accept your reduced value claim. Most insurance companies use a standard calculation called the 17-cent diminished value formula to determine the value of a vehicle after an accident. The requirements for filing a reduced value claim vary by state, but even if you can file one, the insurer may not be required to pay.
However, there are times when your insurance company may pay for the decrease in value of your vehicle after an accident. You have a lot at stake, and you are entitled to fair and swift compensation for the declining value of your car. We will review your claim, make a preliminary estimate of the diminished value and provide you with your estimated diminished value. The value of a vehicle can decrease after an accident, sometimes dramatically, even if it was repaired correctly.