Diminished Value Calculator: How Much is Your Car Worth After an Accident?

When a vehicle is repaired after damage, it often loses value regardless of the quality of the repairs. This reduction in value is called diminished value.

Wondering how to figure out your car’s diminished value? Let us help!

Calculating Diminished Value Requires Expertise

There is a lot of confusion online about how diminished value is calculated. No specific laws or regulations mandate a universal formula, like the widely discussed 17c formula.

The best way to determine diminished value is by analyzing the market for similar vehicles with accident histories.

Trusting an inexperienced appraiser or basic software can lead to insurance companies rejecting or undervaluing your claim.

Diminifaq brings over 25 years of experience in vehicle valuation and insurance claims. We specialize in helping car owners document and recover their car’s diminished value after an accident.

Are You Eligible for a Diminished Value Claim?

Before calculating your diminished value, you need to check if you qualify. Generally, you meet the requirements if:

  • Your car is not leased (financed vehicles are fine).
  • Your car is less than 7 years old.
  • The mileage is under 100,000 miles.
  • Another driver was at fault for the accident.
  • The vehicle has no major prior accident history (or only minor previous damage).

If you meet these criteria, request a free estimate from Diminifaq. We’ll review your claim, provide a preliminary calculation, and estimate your vehicle’s diminished value.

Simple Steps to Calculate Diminished Value

Want to get a rough idea of your car’s diminished value? Follow these steps:

  1. Find your car’s current book value.
  2. Estimate the value reduction based on the severity of the damage:
    • Minor to moderate damage: 10% to 15% of the book value.
    • Moderate to severe damage with structural issues: 15% to 20% of the book value.
    • Airbag deployment: Up to 25% of the book value.

For example, if your car’s fair market value is $35,000, the diminished value could range from $3,500 to $7,000—or up to $8,750 if the airbags deployed.

Insurance companies often focus on repair costs when determining diminished value. Larger repair bills usually lead to higher settlements.

Why the 17c Formula Falls Short

The 17c formula is one method insurance companies use to calculate diminished value. While common, it has several flaws:

  1. 10% Cap: An arbitrary limit on claim payouts.
  2. Mileage Modifier: Penalizes vehicles twice for mileage, which is already factored into book value.
  3. Damage Modifier: Assigning damage levels is subjective and can lead to inconsistent results.
  4. Limited Data: Doesn’t consider critical factors like vehicle class or accident notations on reports like CARFAX.

For example, a structural damage notation impacts value far more than minor paint damage, and luxury vehicles depreciate differently than standard cars.

Typical Diminished Value Recoveries

Newer vehicles and those with extensive damage typically yield higher settlements. Claims for minor damage require more negotiation but can still be successful.

As a general rule, expect diminished value to be 10% to 20% of your car’s fair market value. For instance, if your vehicle is worth $20,000, you could recover $2,000 to $4,000.

Let Diminifaq Help You Recover Your Vehicle’s Lost Value

Request a free estimate from Diminifaq today. We’ll calculate your diminished value using market comparisons, respected pricing guides, and our extensive experience. Our appraisals are trusted by insurance companies and hold up in court.

We’re here to guide you through the claims process, ensuring you get the settlement you deserve. Reach out now to get started!