r/Insurance • u/tastyburger1121 • 13h ago

Help with diminished value?

Does anyone have any guidance on how much to ask for diminished value on my car.

It was only a month old when I got hit in a brand new Toyota 2026 Prius with less than 1,000 miles. The damage wasn’t “too bad” with just a back corner being damaged/hit (not my fault) $3500 in repairs.

I saw the 17c formula but with my car only having had been a month old I’m wondering if I should ask for more or if that has no bearing on a the claim.

1 Upvotes

60% Upvoted

20 comments sorted by

6

u/sephiroth3650 13h ago

If you were to ask for more, how would you justify asking for a larger number? Diminished value isn't some "I know the car is worth a lot less" figure. You have to back it up with numbers proving it.

$3500 in repairs suggests this was a very minor accident with no structural damage. And if the car was fully repaired to pre-accident status, it's not likely to get a large settlement.

Now if you're in Georgia, you are probably stuck with what the 17c formula kicks out. That's not an absolute cap, but they'll probably stay in that ballpark, since that formula is specific for Georgia.

Otherwise, the basic gist of it is that you would compile 2 sets of numbers. One would be sales numbers (not dealer list prices) for comparable used cars with no accidents. I get it....it's a month old. But it's no longer a new, on the lot car. It's a lightly used car. And we all know that there is a depreciation hit the second you drive that car off the lot. But anyway, you start with those numbers. Then you compile sales numbers for comparable used cars with one (ideally similar) accident. You use those two data sets to show a measurable drop in value.

Or you hire, out of pocket, a diminished value appraiser to come up with those numbers for you. They will promise you the world. And their prices will vary. And it's only worth it if their report convinces insurance to pay out enough to offset their cost. But it's an option that can work out for you.

Or you sue the at fault driver. Hope the court agrees with you.

2

u/tastyburger1121 13h ago

Thank you! This is all actually really helpful. I figured the damage multiplier at .25 and mileage at 1.0 - the diminished value came to about $900.

I’ll try to see if I can find vehicles similar , I guess the mileage factor might be a problem. I suppose I would have to compare it to like a short term leased vehicle or something idk?

2

u/sephiroth3650 13h ago

You're looking for sales values. Diminished value is this idea that you should be compensated for being left with property that is worth less than it should be worth b/c of the accident. And if we're buying into that argument, then your dv number should be based on seeing a reduction in sales value for similar cars, under the same circumstances.

That's why the strongest argument is being able to show "Hey, I have sales numbers for comparable cars to mine that show that it would sell for $X right now if I hadn't been in this accident. But I cannot sell it for that much because of the accident. These other sales numbers show that comparable cars with 1 accident only sell for $Y. And so I should be entitled to X-Y dollars in diminished value." That's the argument you're trying to make.

And yes.....it will be tough to come up with a good list of examples if the car is so new. But that's the battle you will have to fight.

2

u/tastyburger1121 13h ago

Thank you. I will try to find a comparable vehicle that was damaged to something similar that wasn’t.

I’m assuming using like a used car website is applicable in this situation then? And I send them links or something to that affect?

2

u/sephiroth3650 13h ago

You're ideally looking for actual sales numbers. Not dealer list prices. And you ideally have multiple examples for both cases.

I mean....I could go online and list a 1994 Pontiac Sunbird for $35k right now. Doesn't mean that car is worth $35k. Nobody would ever pay that much for it. That's why it's easy to dismiss random list prices.

1

u/tastyburger1121 13h ago

Ahhh okay 👍

1

u/Technical-Flow6588 12h ago

As I stated above, the problem is that the websites (carmax, carvana) aren't all that reliable with their accident information. If a car is listed as having been in an accident there's no easy way to find out what the damage was. And I don't want to pay $30 each time or whatever it costs to scramble around searching for multiple comps.

If State Farm comes back with the same offer I'll have to decide whether to just give in and accept or to pay $400-500 for a professional appraisal. My main problem is I really don't know what a fair offer is but from what research I've done it didn't seem that I was out of line to ask for $6,000. I don't expect to get that but used it as a starting position.

1

u/Technical-Flow6588 12h ago

They'll multiply your mileage at .99 I think. They did mine at .96 because I had 4K miles. But that 17c formula isn't binding in any way. It's just what they try to use to pay as little as possible.

-1

u/Technical-Flow6588 13h ago

I'm in the middle of a DV claim with State Farm. Low speed collision, no frame damage but about $8,000 in repairs. 2026 Civic ST hybrid hatch with 4K miles. The biggest problem I'm having is finding comps. And when you do find a comp there's no way to know what kind of damage was done unless maybe you pay for a Carfax or VIN check which I'm not wanting to do. I'll hire a professional if necessary.

Anyway, I asked for 6K in DV. State Farm came back with ~$800. I gave them some more detailed info and am waiting for their next offer.

-1

u/tastyburger1121 12h ago

Wow that’s brutal, it doesn’t surprise me with insurance companies though. Let me know if you receive any updates. This is all very interesting

0

u/AltonIllinois 10h ago

Why do you think you are owed 75% of the repair cost?

1

u/Spiritual-Rub-675 7h ago

This is a request they will not fulfill.

3

u/Delicious-Witness-85 13h ago

You can ask for more but you’d have to prove it.
Your best bet is asking the at fault insurance carrier you wish to pursue a diminished value claim and they will likely use one of their appraisers to calculate the DV.
Alternatively you can hire your own appraiser at a cost of $500 or so and have them calculate it for you and present it to the insurance company.
For a minor damage claim like this I don’t think you’ll get more than a few hundred dollars.

2

u/IntelligentBox152 13h ago

You mention 17C, are you in Ga?

4

u/tastyburger1121 13h ago

No Illinois, google just mentioned the 17c formula I didn’t realize it varied by state my bad.

2

u/Silence_Farmer 13h ago

Yeah the 17C formula is specific to GA, but it's always a good starting point. It gives you a baseline in the same way when selling a car a Carmax quote to buy gives you a baseline to not go below when selling privately.

-2

u/mikewrx 12h ago

Going through this now actually - long story short it sucks. My car was hit and run while parked, dash cam caught the box truck that did it with the license plate. Cops ran plate, caught the guy, and then my car got repaired on their dime.

Car is a 2024 WRX with 16k miles, they did $12k in damage. I figured I’d ask for $5k and they’d counter with something in the middle but no, they told me to screw off.

I saw online there are places that will find comps for you and generate a report but honestly I was just pissed off at this point so I found a diminished value attorney and set him loose. He found the comps and asked for $6k, I’ll lose about $1500 to pay him in the end.

Still waiting to hear back from them but it sucks - if you have the means find an attorney and let them deal with it.

Edit - also saw you mention the 17c formula, my attorney said don’t even bother with that and go find comps instead.

1

u/DeepPurpleDaylight 9h ago

Not sure why you think they'll agree with the lawyer when he's asking for even more than your offer that they already turned down.

1

u/mikewrx 9h ago

Because he found comps that show it - it’s not a baseless demand. His specialty is diminished value and he writes a large document supporting his demand with other vehicles in the same situation.

So yes - I do think his demand makes sense. There is a several page demand he wrote that proves it with multiple comps.

1

u/DeepPurpleDaylight 8h ago

You're not likely to get the thousands you seem to be expecting. Bottom line they don't owe you anything for DV until a court says they do. Any DV payment before that is totally voluntary. And if you have to go to court will likely cost you a lot more for your lawyer. I just don't see you getting DV that's ~50% of the damages, but if you get anything, it will be much much smaller.