If you’re interested in determining diminished value, then you may already know that you’re entitled to file a claim to recover the value your vehicle has lost because of its accident history.
Calculating diminished value after your car accident takes a lot of skill and experience.
Now is not the time to entrust your diminished value claim to an inexperienced appraiser who may lack the knowledge and experience to help you.
And if you choose a company that uses canned software and questionable methods, your claim will be challenged by the insurance company. And if that happens, you’re going to need a live person to help you through the process.
DVCHECK has over twenty years of vehicle valuation and insurance industry experience handling diminished value claims. We’re experts at calculating diminished value.
We specialize in helping car owners just like you document, demand, negotiate, and recover their diminished value settlement after an auto accident.
We have a simple process for determining diminished value.
The first step is to see if you are a likely candidate for filing a diminished value claim.
Use this diminished value checklist to help determine if you qualify.
You may be able to file a diminished value claim if the following applies to your situation.
Is not leased (financing/car loans are okay)
Is less than seven years old
Has less than 100,000 miles
Does not have a previous accident history or if it was in a previous accident, the prior damage was minor
Another driver was at-fault for the accident
In some states such as Georgia, you can file a diminished value claim even if the accident was your fault.
If you meet the basic requirements outlined above, the next step is to request a free estimate.
We will review your claim, do a preliminary diminished value calculation, and provide you with your estimated diminished value.
While your free estimate can’t be used to submit diminished value claims, it will give you a high level estimate of how much money you’ll recover if you order our certified appraisal.
The final step is to order an appraisal. We charge a flat fee which includes your diminished value appraisal, demand letter, and ongoing negotiation assistance to help you maximize your diminished value settlement.
Diminished Value Calculator
Most online diminished value calculators are based on the 17c formula.
The 17c formula takes 10% of the book value of your car and utilizes mileage and damage modifiers which are based on a scale.
Here’s a sample 17c diminished value calculation for a $25,000 vehicle with minor damage and 60,000 miles.
$25,000 book value x 10% is $2,500 x .40 mileage modifier is $1,000 x .25 minor damage modifier = $250 in diminished value
The 17c formula has issues such as the 10% cap and questionable mileage modifier which could be considered a double penalty for mileage (mileage was already accounted for when determining the book value).
If you’re looking for a simple way to calculate diminished value to get a basic idea of what your loss may be, first determine the book value for your car. If the damage is moderate to severe, figure roughly 15% to 25% of the book value and if the damages are less than moderate, figure 10% to 15% of the book value.
How much diminished value you should expect to recover.
The newer your car the better, the more damage the better.
Insurance companies tend to place a lot of emphasis on the cost of repairs when calculating diminished value.
Typically, the biggest settlements will be on claims with larger repair costs. You can still get a diminished value settlement with minor damage, but the negotiation may be a little more involved.
As a general rule, you should expect to recover 10% to 25% of the fair market value of your vehicle.
That means if your vehicle has a fair market value of $30,000, your diminished value recovery after an accident could be as high as $7,500.
Free Diminished Value Estimate
Your free estimate will give you the confidence of knowing that you’ll recover far more than the $300 you’ll pay for one of our reports.
After you receive your free estimate and get your questions answered, order your report and follow our diminished value recovery process. We’ll use the information you provide for determining and calculating your diminished value.
Because you’ll get a certified diminished value appraisal that uses local market values, price guides, and our many years of experience, it will be taken seriously both by the insurance company and in a court of law.
As you move through the process we’ll be there to support you and help to ensure that you recover the maximum amount of your diminished value possible.
You have a lot at stake and you are entitled to a fair and fast settlement of your car’s diminished value.