What diminished value is
A repaired car with an accident on its history report is worth less than the same car without one. That difference is diminished value. In most states you can claim it from the at-fault driver’s insurer.
The 17c formula
The formula comes from a Georgia class action and is used by many insurers:
- Start with 10% of the car’s pre-accident value (the cap)
- Multiply by a damage factor from 1.00 (severe structural damage) to 0.00 (no structural damage)
- Multiply by a mileage factor from 1.0 (under 20,000 miles) to 0 (100,000 miles or more)
It tends to undervalue newer, low-mileage and luxury cars. An independent appraisal based on market data often comes in higher.
Who can claim it
Claims against the at-fault driver’s insurer are allowed in most states. Claims against your own insurer for diminished value are allowed in only a few.
Questions people ask
How do I prove diminished value?
With an independent appraisal comparing the market value of your repaired car with similar cars without accident history.
Is there a deadline for a diminished value claim?
Yes, the property damage statute of limitations in your state, often two to three years.