Immediate Loss Of Value Due To An Accident
Diminished value is an unseen, delayed, loss of market due to an accident. Aside from the physical damage, the loss of market value is due to changes in the vehicle composition - or its factory state - which can impact performance, consumer confidence, and longevity.
Because Diminished Value is independent of the physical accident damage, it can be owed to you regardless of whether you decide to repair your vehicle or not.
What is Diminished Value and How is it Calculated?
Our Diminished Value Calculator helps you estimate market value loss after an accident. Diminished value can come as a big surprise after experiencing an auto accident - blindsiding people who weren't aware of the impact, or being much more costly than was actually thought to be lost. It's also widely misunderstood in the auto industry - even among companies consumers often turn to as authorities in auto values. It is essential to complete accurate diminished value calculations for your claim to avoid paying the expense for it later.
As industry experts, Claim Complete evaluates diminished value with a deep understanding of the repair processes involved to restore collision damage, advanced driver technology, and market value impacts. Lets take a look at what diminished value is.....and what diminished value isn't.
Inherent Diminished Value
Inherent Diminished Value is a value depreciation that exists even after quality repairs due to essential or characteristic changes in factory attributes. These changes occur due to both processes require to complete the repairs, and due to environmental restrictions that prevent repair restoration to that of factory quality. Any repair work done to your vehicle permanently alters it from it's original state.
Review Calculating Loss of Use to see if you qualify to use our Calculator Bundle at a discounted rate.
How Do Insurers Calculate Diminished Value?
Stigma Value -
Often, insurers refer to Diminished Value as 'Stigma' - or a change in your vehicle history report which was clean prior to the accident, and has now been tarnished due to the accident. Often, the presence of a prior accident is considered a disqualifier for a new diminished value claim.
While the presence of an accident in your vehicle history is relevant, and may change how your diminished value is calculated, it's not the only factor that affects a vehicle's value after an accident.
The primary driver of Diminished Value is the compromised condition of it's factory state. There may be additional body filler present (making panels more rigid), heat is often necessary to repair damaged metal (altering the molecular structure of metal in the repair area.), or alternative parts may have been used (unverified for safety or performance). These are just a couple of the items that impact calculating diminished value.
The 17c Formula -
The 17c Formula is the most heavily relied upon advertised diminished value calculation in the auto industry. It is also HIGHLY inaccurate and misconceived.
In 2001 there was a Georgia Supreme Court diminished value class action lawsuit (Mabry v. State Farm). The court approved a formula to use in the negotiation of the class-wide settlement in paragraph 17, section c, of their ruling - thus the '17c' Formula was born.
While this formula may have been useful in calculating a large (and negotiated) class settlement, this is NOT an accurate method of calculating diminished value for individual losses. Some of the fundamental flaws of this class-application formula are that it applies duplicative deductions as well as a cap of 10% ACV. This means that if your vehicle's actual cash value is $30,000, and your diminished value due to a loss is $8,000 - the 'cap' would only allow a $3,000 maximum result.
In addition, many sources cite this formula as being 'approved' by the state of Georgia, which is also inaccurate. In 2008, this widespread falsehood prompted the Georgia Insurance Commissioner to issue a Public Directive ordering anyone using or insinuating this formula had been approved by the state to Cease and Desist use of that communication.
Diminished Value Calculator
Nationwide Coverage
The Claim Complete Auto diminished value calculator is designed to calculate how much market value a vehicle may have lost due to its accident and the repairs needed which alter original factory conditions - even after quality repairs.
Helpful if:
Your vehicle was repaired, not totaled
You want to understand whether diminished value applies
State and Policy Specific
Diminished Value recognition may vary state by state. Your local insurance commissioner is an excellent resource for consumers to help with clarifying coverage if needed.
It's also important to read your policy wording. Some policies specifically exclude coverage (such as diminished value under comp/coll) that other insurers don't. It is always essential to understand what coverage you have for all aspects of your policy.
Who Qualifies for Diminished Value?
Coverage
Fault: Diminished value is only recoverable under an auto accident claim if you were not at fault for the accident.
Third Party - PD (Liability) Coverage: As a Third Party Claimant, you would be eligible for a diminished value claim with the at fault drivers insurance carrier.
First Party - UMPD Coverage: If the other party was not insured, you may qualify with your own insurer under your UMPD coverage.
Small Claims
If all attempts at recovery through the insurer have failed, small claims court may be your only other option. Many consumers don’t pursue this avenue - in fact, insurers are betting on it. If you choose not to be unfairly compensated after your loss, your Claim Complete Diminished Value Calculator can be used as evidence in your small claims case.
If you are the at fault party being taken to small claims, be sure to notify your insurance carrier. While they are usually prevented from representing you in small claims, the do have a contractual duty to indemnify you in the event of a loss - so you may be able to recover any judgement against you.
What You’ll Need To Calculator Your Diminished Value
IImportant Diminished Value Calculator Tips -
Be sure to check your Junk or Spam email folder for your calculator instructions, and mark us as an approved sender.
Be sure to save your calculator link, username, and password for future access.
It is recommended that specialty, custom rebuild, or heavily modified vehicles have a full comprehensive appraisal.
Repair Estimate or Final Bill
If you are not planning to repair your vehicle damage your repair estimate will be sufficient for your calculations. If you are having repairs completed it is recommended to complete your diminished value calculation after all repairs have been completed, using your Final Bill for reference.
Vehicle Diagram
Claim Complete Auto™ calculator diagrams are designed as a reference tool to help you identify the extent of work completed in your vehicle repair. Instructions are included in the confirmation email you'll receive after purchase.
Your Diminished Value Calculator Questions, Answered
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No - as discussed above this is NOT an accurate individual loss calculation method. Our calculators are detailed and results are based on the actual damage and/or repairs needed for your vehicle.
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Yes - once you complete your calculations you have the option of downloading a PDF report of your results. If fact, you have access to the calculator for 72 hours - so any mistakes or adjustments are able to be corrected and reprinted as needed.
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Yes - After your calculator purchase, you will receive an email with step-by-step instructions for calculating your Diminished Value Claim. If you don't see the email, please check your junk folder and mark us an an approved sender. If you don't see your instruction email there, or have any issues using the calculator at all, please contact us at support@claimcompleteauto.com.
For additional assistance email support@claimcompleteauto.com