Since the diminished value assessment is based on the current market price of the vehicle and the accident damage variable its very difficult to create an extremely accurate diminished value claim calculator. Once you know the original value of your vehicle based on the Kelley Blue Book estimateyou can use the 17c formula to determine your cars value after an accident or continuous use.
Use a car value calculator to find the pre-accident market value of your vehicle.
How to estimate diminished value after accident. Specify that youre filing a claim for diminished value after a car accident. That represents a 4500 drop that youll want. Value of Vehicle Prior to Accident -- Value of Vehicle After Accident Estimated Diminished Value Subtract the value of the vehicle after the accident from the estimated value of the vehicle prior to the accident.
The 17c formula is an industry-wide standard that is considered a reputable way to calculate a cars worth including any diminished value from damage due to accidents. How to File a Diminished Value Claim. Or check out sites like Edmunds Kelley Blue Book or NADA.
Determine your cars value pre-accident. Calculate the diminished value by looking up the cars pre-crash and post-crash values adjusting for the condition of the vehicle. Apply a 10 cap.
Once a car is involved in an accident and has been repaired a reasonable consumer will not pay the same price for that vehicle as they would for a vehicle with no accident. Subtract the value of your car post-accident from the value of your car pre-accident. The easiest way to do this is to use either the Canadian Black Book or Autotraderca.
Then subtract the post-accident value of your car from the pre-accident value of your car and that will give you the actual diminished value. First go to NADAs website to get a sales value. The 17c formula takes both damage and mileage.
Diminished value formulas might not be accurate since you could potentially sell the car for more than your insurance company is saying. This will give you a good estimation of the actual. Heres a sample 17c diminished value calculation for a 25000 vehicle with minor damage and 60000 miles.
25000 book value x 10 is 2500 x40 mileage modifier is 1000 x25 minor damage modifier 250 in diminished value. Insurance companies typically use a method called 17c diminished formula to identify the new value of a vehicle after an accident. Heres how to determine your cars value after an accident and before you start negotiating with your insurer.
For example the value of your vehicle may have been 22500 before the accident but after all the repairs have been made it may be appraised for only 18000. You may not realize it but insurance companies are intentionally keeping quiet on extra money you are entitled to receive. The formula for determining the estimated diminished value after an accident is.
The diminished value is the loss in market value that occurs when a vehicle has been involved in an accident. The loss in value is based on the fact that the vehicle has a damage history or is considered a vehicle that has been in an accident making its resale value lower in the eyes of prospective buyers. So using the example from earlier lets say your car was worth 15000 before the accident.
If the pre-accident value was 15000 and the post-accident value is 11000 the calculation would be 15000 11000 4000 which represents the cars diminished value. What is The Lost Value of Car After Accident. Simply multiply 20000 by 10.
You might want to even your estimated value after accident out to 9000. The result is 2000 which represents the highest amount a car insurer will pay for. Contact the at-fault drivers insurance company detailing the accident events and the extent of your cars damage.
This concerns the difference in the cars value right before and right after the accident occurs. 15000 15000 X33 10050 15000 10050 4950. Next get a damage estimate from a few garages or mechanics.
If the pre-accident value was 15000 and the post-accident value is 11000 the calculation would be 15000 11000 4000 which represents the cars diminished value. Jumpstart the process in a few steps. A diminished value claim compensates a driver for the drop in a vehicles resale value after an accident.
If the NADA value for your vehicle is 20000 calculate the base loss of value by using a 10 cap. Before you file a claim get your car professionally appraised so you can calculate the diminished value and have supporting documentation. Calculate the diminished value by looking up the cars pre-crash and post-crash values and adjusting it for the condition of the vehicle.
This is the most common scenario among claims of this type. Compare this value with similar cars with accident histories to find an actual value of your car. In simple terms this method takes into account several factors.
It refers to the difference between how much the car would be worth if you traded it in or tried to sell it immediately after a crash. Say in this case similar cars on the market were in a range of 8000 to 10000.
