Get Diminished Value Claim Letter

Example of a diminished value calculation If the NADA value for your vehicle is $20,000, calculate the base loss of value by using a 10% cap. Simply multiply $20,000 by 10%. The result is $2,000, which represents the highest amount a car insurer will pay for a diminished value claim under formula 17c.

Diminished value claims can be a difficult process. But if your car is worth significantly less after an accident, even after it has been restored to original condition, then filing a claim for the car's diminished value could compensate for the significant financial loss in value.

Typically, the at-fault driver's property damage liability insurance covers a diminished value claim. If an uninsured or underinsured driver is at fault for the accident, you can file a diminished value claim against your uninsured and underinsured driver policy, if you have one.

At any stage, the car depreciation rate is about 10 to 25 percent more than the normal rate. Factors include the vehicle's age and post-accident condition. Cars that have been fully repaired will have less depreciation and cars with more extensive repairs or incomplete repairs will see higher depreciation rates.

For most states, there's generally no law that says insurance companies have to pay for diminished value claims. That doesn't mean your claim won't be approved, but it does mean that your chances may be slimmer.

Proceed with caution if you caused the accident. ... Find the diminished value of your car. ... File a diminished value claim with your insurer and ask for compensation. ... Contact your state insurance commissioner or hire an attorney if all else fails.

First, go to NADA's website to get a sales value. If the NADA value for your vehicle is $20,000, calculate the base loss of value by using a 10% cap. Simply multiply $20,000 by 10%. The result is $2,000, which represents the highest amount a car insurer will pay for a diminished value claim under formula 17c.

If you and your insurer disagree about how much your vehicle's value has diminished, negotiate to get the amount you want. You also may decide to negotiate with your insurer after it declares your vehicle a total loss and offers you less than what you think it's worth.

Look up the market value of your car at the NADA or Kelley Blue Book websites. ... Apply a 10 percent cap to the value by multiplying the market value by . ... Multiply for damage. ... Deduct more of the value by applying mileage to the formula to get to the final 17c value.

Step 1: Determine the value of your car. ... Step 2: Apply a 10% cap to that value. ... Step 3: Apply a damage multiplier.