Diminished value is defined as a vehicle’s loss in value after being wrecked and repaired. Diminished value is a stigma loss (there is a whole industry surrounding this loss–CARFAX). Furthermore, If you try to sell your vehicle that has been damaged but fully repaired, it will sell for less than if it had never been wrecked and repaired.
What can you do?
To combat this, you can file for a diminished value claim which car insurance companies must 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 ***
Watch a video about Diminished Value here.
According to Georgia’s Governor’s Office of 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 average diminished value 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:
- The number of accidents is 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) than the average,
- The average amount that Georgia drivers 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.
See article: Appraiser says car insurance underpays diminished value claims
What you can do to get a claim!
Ultimately, setting up a diminished value claim on your vehicle by hiring an independent appraiser can be tedious and lengthy but achievable.
Let us help you get your Diminished Value! Contact us today at 770-869-2325.
