After being involved in a car accident and suffering personal injuries and physical property or vehicle damages, it is very imperative that you calculate the diminished value. Many people probably don’t know that the diminished value refers to the loss in market value and typically occurs after your vehicle gets damaged in an accident.
No matter if your vehicle is repaired after being involved in an auto accident, a reasonable customer will never pay the same price for your vehicle as he would for a no accident vehicle. Many insurance companies try to stay quiet on the extra money that the accident victim is liable to receive under Georgia’s diminished value law.
Fortunately, you can reach out to a car accident lawyer in Atlanta and seek their valuable suggestions and advice in this regard. Having a professional by your side will eventually help you understand all the necessary steps to calculate the diminished value and receive the compensation you deserve.
Necessary Steps to Calculate the Diminished Value
A lot of insurance companies use a 17c calculation technique to determine the diminished value for your car. This formula was first used in Georgia’s state farm claim case. So, here’s how the 17c calculation works.
Step 1 – Evaluate the Value of Your Car
Before calculating the diminished value of your car, you must determine the sales value of your vehicle. Calculating your car’s sales value is a good starting point because it will eventually give you an estimated quote based on the model and make-year of your vehicle, its mileage, and the level or degree of damage. Moreover, you can also consult the Kelly Blue Book and use the calculation tool to receive a quick estimate of your vehicle’s worth.
Step 2 – Calculate the Base Loss of Value
You need to understand that the 17c formula primarily takes the retail value of your car and applies a cap of 10% to it (i.e., multiplies the value by .10) to produce the base loss of value. Unluckily, there is no proper justification for this base loss value gap, and it is mainly in the insurance company’s best interests to use it.
Step 3 – Applying the Damage Multiplier
In this step, your personal injury lawyer in Atlanta will help adjust the amount from step 2, alongside documenting all structural damage to your vehicle. It will depend on the overall vehicle damages and the parts that need to be repaired or replaced in the vehicle. To apply a damage multiplier, all you need to do is to take the amount from step 2 and multiply it by the following number as per the damages caused to your car.
- 1 – in case of severe structural damage
- 0.75 – if major damage has been caused to your vehicle’s panels and structure.
- 0.50 – in case moderate damage has been caused to your car’s panels and structure.
- 0.25 – if minor damage has been caused to your car’s structure.
Step 4 – Your Car’s Mileage
In addition to all these calculations for the diminished value, your insurance company will also make certain deductions for your vehicle’s mileage. The amount from the Step 3 will be multiplied by the following numbers to find out the final diminished value of your car.
- Multiply by 1 – for 0 to 19,999 miles.
- Multiply by 0.80 – for 20,000 to 39,999 miles.
- Multiply by 0.60 – for 40,000 to 59,999 miles
- Multiply by 0.40 – for 60,000 to 79,999 miles
- Multiply by 0.20 – for 80,000 to 99,999 miles
You need to know that it is during this step that the insurance company double dips and discounts the diminished value of your car based on its mileage.
Find the Right Attorney for Your Diminished Value Claims
So, suppose you’re looking forward to setting your total loss claims or the diminished value of your vehicle. In that case, you must consult a car accident attorney in Atlanta and seek their professional help to receive the maximum compensation that you deserve.
Ensure that you do not leave any chance when it comes to acquiring compensation for your vehicle’s diminished value. For more information, you can contact The Hurt 911 Injury Centers at 18004878911 and speak with our professional team of attorneys to determine your diminished value claims.