Under formula 17c, to calculate the diminished value of your car, you would take your vehicle value and multiply it by a 10% cap. You would then apply a damage multiplier based on the damage to your car and a mileage multiplier based on your mileage.
How do you negotiate a diminished value claim?
How to Negotiate the Diminished Value on a Car
- Don’t Wait to Act. If you car is damaged by another driver, you have a chance of collecting compensation from the offending driver’s insurance company to offset diminished value.
- Get One or More Appraisals.
- Read the Policy Carefully.
- Decide On Your Request Number.
What are elements that should be considered in considering a claim for diminished value?
How Do You File a Diminished Value Claim?
- The accident was not your fault.
- Your vehicle’s fair market value before the accident (Kelley Blue Book or NADA valuation).
- Your vehicle’s fair market value after being repaired from the accident, which requires hiring a certified appraiser.
How do you calculate the depreciation of a car after an accident?
Example of a diminished value calculation
- Step One: Check your car’s value. $20,000.
- Step Two: Calculate the base loss of value. $20,000 x 10% = $2,000.
- Step Three: Apply a damage multiplier. $2,000 x 0.75 = $1,500.
- Step Four: Apply a mileage multiplier. $1,500 x 0.40 = $600.