GEORGIA DIMINISHED VALUE

WHAT IS DIMINISHED VALUE?

 Georgia 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 ***  Cashing the check is consistent with accepting their offer.

Watch a video about Diminished Value here. 

SOME NUMBERS ABOUT GEORGIA DIMINISHED VALUE

According to Georgia’s Governor’s Office of the Highway Safety, there were about 1,797 accidents in Georgia in 2021. 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.

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 FILE A CLAIM

Setting up a diminished value claim on your vehicle by hiring an independent appraiser can be tedious and long but definitely achievable. Please check the FAQ below for more info on this.

See article: Appraiser says car insurance underpays diminished value claims

Let us help you get your Diminished Value!

FAQ: GEOGIA DIMINISHED VALUE

1. What is diminished value?
Diminished value refers to the loss in a vehicle’s market value after it has been involved in an accident, even if it has been fully repaired. Many buyers perceive vehicles with accident histories as less desirable, which can impact resale value.

2. Does Georgia law allow diminished value claims?
Yes, Georgia recognizes diminished value claims. The Georgia Supreme Court ruling in *State Farm v. Mabry* established that insurers must consider diminished value when settling claims, meaning you have the right to pursue compensation.

3. How is diminished value calculated in Georgia?
With Georgia Diminished Value, the 17c formula is often used. This formula factors in the pre-accident value, damage severity, and mileage. The result is an estimated loss in value due to the accident, but it’s essential to work with a professional appraiser to ensure accuracy.

4. What is the 17c formula?
The 17c formula is a method for estimating diminished value. It starts with 10% of the vehicle’s pre-accident value, then applies a damage multiplier and a mileage multiplier to adjust for the accident’s specifics. However, it may not fully reflect your vehicle’s loss in value, so a professional assessment is recommended.

5. Am I eligible to file a diminished value claim?
In Georgia, your vehicle may qualify if:
– It has significant market value (typically $7,000+).
– It is less than 10 years old.
– It sustained substantial damage but wasn’t totaled.
– It has a clean title and reasonable mileage.

6. How long do I have to file a diminished value claim?
Georgia’s statute of limitations for filing a diminished value claim is four years from the date of the accident.

7. What documents do I need to file a diminished value claim?
You’ll need:
– Police reports and accident details.
– Detailed repair invoices and records.
– A professional appraisal report showing the estimated diminished value.

8. Can I file a diminished value claim with my insurance if I was at fault?
Yes, Georgia law allows you to file a diminished value claim through your own insurance, even if you were at fault. However, diminished value claims are more common in cases where another party was responsible.

9. How do I file a diminished value claim?
To start, document the accident and gather all repair records. Next, obtain an appraisal from a licensed professional to determine the diminished value. Submit these documents with your claim to the insurance company and negotiate as needed.

10. Do I need a lawyer to file a diminished value claim?
While it’s possible to handle a diminished value claim on your own, working with an experienced attorney can be highly beneficial, especially if your insurer disputes the amount. 770GoodLaw can guide you through the process and help you seek fair compensation.

11. What if the insurance company offers a low diminished value settlement?
If the insurer’s offer seems too low, you have the right to dispute it. You can provide additional documentation or request an independent appraisal. 770GoodLaw can assist in negotiating a fair settlement to reflect your vehicle’s actual loss in value.

12. Why choose 770GoodLaw for my diminished value claim?
770GoodLaw is experienced in handling diminished value claims in Georgia. We understand the complexities of calculating accurate diminished values and negotiating with insurance companies. Let us help you maximize your compensation.