Vehicle Diminished Value In Georgia - In Accident Loss Claims, "Watch Your Back"!


Georgia law gives you the right to claim the amount of money you will lose due to the depreciation of the value of your vehicle if and when you decide to sell. ... Once you've calculated the diminished value of your vehicle and your related future losses, take this sum to the at-fault party's insurance company.

Diminished Value (DV) is the loss in market value that occurs when a vehicle is wrecked and repaired. A reasonable consumer will not pay the same price for a wrecked, then repaired vehicle, as they will for a vehicle with no accident history. Even if the repairs were done well, the vehicle will still lose value.

In a diminished value accident claim, the claimant seeks compensation for the reduced value of their vehicle. To determine diminished value, subtract the current value of the vehicle from the vehicle's value prior to the car accident.  For example, if a vehicle with a resale value of $40,000 sustains $15,000 worth of damage and is fully repaired, the resale value will be less than $40,000 because a customer will prefer a vehicle that has not been involved in an accident over one that has. The drop in market price constitutes diminished value.

In most cases, the most accurate way to assess the current value of the vehicle is to get a professional certified appraisal.  A certified appraiser is able to act as the advocate for their client with the insurance company. If a resolution is not easily found, the case may go to a formal arbitrator or to a court hearing for a settlement.

The need for a certified appraisal is especially true for rare and collectible vehicles, but there are many reasons to call for one on your everyday driving vehicles, as well. If you are a driver in Georgia who has been in a car accident, you likely have not heard of the Mabry vs State Farm 17C Formula. This refers to an overly simplistic calculation of diminished value that many insurance companies attempt to use to minimize their payout under an auto insurance policy.

While the 17C Formula has been treated as an industry standard by many in the insurance world, it is unfair and inaccurate. Drivers who have had a car damaged in an accident often need a certified appraisal report to challenge the results of the 17c Formula. In short, the Georgia insurance commissioner has instructed insurance companies not to officially refer to the 17c Formula loss of value as a legal or determinative calculation of diminished value. In actuality, each vehicle is unique, and the resale value lost after an accident – even after repairs have been made – is often considerably more than the 10% an insurance company may try to limit you to.

It is recommended that any diminished value offer from an insurance company be seriously scrutinized.

Research copy credit to various sources*


Provided by Mike Thies, an I-VAN Certified Appraiser (International Vehicle Appraisers Network) For more Information, call 770-883-0160 -

I-VAN is a group of hobbyists who have come together through specialized training to create a true network of vehicle appraisers. Each of the appraisers has their own interests, knowledge base, and collection of vehicles; through the network we continually share our expertise. Our combined knowledge of vehicles, judging experience, and hobby expertise represents a broader scope of vehicle coverage than any other appraisal organization in existence.

All vehicles are personally inspected by the appraiser who prepares the finished appraisal report in order to ensure maximum acceptance in the marketplace and the legal community. All I-VAN appraisers are certified and required to update their certifications annually through continued education, training, and judging experience.

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