What is Diminished Value?
Diminished value is defined as the loss in value of a vehicle after it has been wrecked and repaired. Diminished value is a stigma loss (there is a whole industry surrounding this loss–CARFAX). If you try to sell your vehicle that has been damaged but fully repaired, it would sell for less than if it was if it had never been wrecked and repaired.
In order to combat this, you can file for a diminished value claim which car insurance companies are required to pay!
Insurance companies will typically underestimate your vehicle’s loss of value using a calculation called “17-C FORMULA”. This formula favors the insurance companies–not you!
*** IT IS VERY IMPORTANT NOT TO CASH THE CHECK FROM THE INSURANCE COMPANY ***
According to Georgia’s Governor’s Office of the Highway Safety, there were about 385,221 accidents in Georgia in 2015. According to Tony Rached of Diminished Value of Georgia, the average diminished value is around $2,850 and the typical average diminished value that insurance companies will try to send each vehicle owner is only around $400.
Let’s put the numbers together and see how much insurance companies are trying to cheat out Georgia drivers each year. Assuming conservatively:
- that the number of accident are still the same as in 2015,
- each accident involved two (2) vehicles, and
- the average diminished value that each driver who was involved in a collision gave up by accepting the Formula 17C check is $2,450 ($2,850-$400=$2,450) then the average,
- the average amount that Georgia drivers altogether are foregoing is ONE BILLION, EIGHT HUNDRED EIGHTY-SEVEN MILLION, FIVE HUNDRED EIGHTY-TWO THOUSAND AND NINE HUNDRED DOLLARS $1,887,582,900 (385,221*2*$2,450=$1,887,582,900).
Cashing or depositing the check from the insurance company for Diminished Value will possibly constitute that you accept their offer to settle your Diminished Value.
A typical diminished value is around $2,000.00. Most insurance companies will offer you about $300.00 for this much-diminished value using their 17C FORMULA.
What you can do to get a claim!
Setting up a diminished value claim on your vehicle by hiring an independent appraiser can be tedious and long but definitely achievable.
Let us help you get your Diminished Value!