A diminished value calculator does not exist, you must have knowledge of market sales, values, inventory and mechanics in order to come to an amount of diminished value.


What is a Diminished Value Calculator and how is it used?

Several companies utilize auction data or the so called dealer quotes without a particular dealer inspecting the car, which is a fraudulent trade in value.

Diminished Value refers to the loss in the resale value a particular vehicle suffers after an accident. When assessing loss in vehicle’s value, three primary components are considered by us and these are as follows:

Over-all value of the vehicle that includes:

  • Actual cash value wherein every car tends to devalue on different speeds
  • Vehicle class such as luxury, upscale and entry level and more
  • Mileage
  • Market inventory
  • Type of vehicle which can be a minivan, pickup truck, 2-door or 4-door
  • Desirability index of the vehicle

Damage Location, Severity, and Type- We also check for the following:

  • Airbag Deployment
  • Parts Ratio
  • Damage to Value Ratio
  • Structural Damage
  • Frame Damage
  • Unibody Damage

Vehicle History & Dealer Reporting- We are looking for:

  • Number of owners
  • Personal or commercial use
  • Previous Accidents
  • Market Comparable
  • Dealer Inventory
  • Many options

Learning the Methods of Calculating the Diminished Value
The disparity between the price that the average dealer would have actually paid for in trade in form for his vehicle in its pre-damaged state at the exact time of the accident as well as the trade in allowance amount actually offered to you for the vehicle is the sum of economic loss you have encountered as a result of the mishap.

However, this is really not completely precise unless you obtain appraisals from various leaders. It then complicates things when there are enormous differences in what these dealers offer. Finally, you need to figure out the amount that your car is really worth by finding out what cars are selling with the same exact mileage, color, features and makes.

The 17c formula tends to deliver quick results and this formula is utilized by the majority of insurance carriers. We do not suggest using this given formula because this is severely flawed and inaccurate. The Supreme Court of Georgia specifically on issues of “Mabry V State Farm” requested the State farm to establish a method in which Diminished value can be measured.

The State farm finally came up with a method of measuring or calculating diminished value to which the court grants temporary approval that is applicable only to that case. The formula and method was known as the “17c” simply because this is found in section c paragraph 17. Many insurers nowadays utilize this formula in assessing loss in value of all claims.

It has been found out that there are flaws in 17c formula and these include the following:

  • Establish arbitrary and random cap which is 10% of retail
  • Utilizes NADA retail, not ACV
  • Uses subjective damage coefficient
  • Utilizes mileage twice, first is when obtaining NADA and the next one is through a modifier
  • Caps diminished value at about 100,000 miles or even less

Remember a car dealer will never loose money and the insurance company never has a loss either, so when you try to do a figure online for 99% of people it will be wrong but if you want to chance your success/ failure on a guess, be my guest but remember everything you send in is permanent and cannot be undone or fixed later.