17c Formula Explained
The 17c formula is the most widely used method for calculating diminished value claims. It was established in the Georgia class action case and is used by many major insurance companies.
| Damage Level | Multiplier | Example Damage |
|---|---|---|
| Severe | 1.00 | Frame/structural damage |
| Major | 0.75 | Replaced panels, major parts |
| Moderate | 0.50 | Multiple panels repaired |
| Minor | 0.25 | 1–2 panels, light damage |
| None | 0.00 | No structural damage |
Frequently Asked Questions
Diminished value is the reduction in a vehicle's market value after it has been in an accident and repaired. Even after perfect repairs, a car with an accident history sells for less than an identical vehicle with a clean history. This loss in value is a compensable damage in most states.
The most common method is the 17c formula used by insurance companies: (Pre-accident value × 10% base loss) × damage multiplier × mileage multiplier. The damage multiplier (0.00–1.00) reflects repair severity; the mileage multiplier (0.00–1.00) reflects age and mileage.
In most states, you can claim diminished value from the at-fault driver's liability insurance. First-party claims (from your own insurer) are harder and not allowed in all states. You typically must prove the loss with a professional appraisal and demand it separately from repair costs.
The statute of limitations varies by state, typically 2–4 years from the accident date. File as soon as repairs are complete. Georgia, for example, has a 4-year statute. Document the accident, get repair records, and obtain a professional appraisal to support your claim.
For vehicles worth $15,000 or more with significant damage (over $3,000–$4,000 in repairs), a diminished value claim is usually worth pursuing. For older, lower-value vehicles, the cost of a professional appraisal may exceed the recoverable amount.
You need: the accident report, all repair estimates and invoices, photos of damage, the vehicle's pre-accident market value (using Kelley Blue Book, CarGurus, etc.), and ideally a professional diminished value appraisal from a certified appraiser. Keep all records organized.