The insurance company offered me a diminished value amount based on the 17C formula. It seems too low. What should I do?

[Simon]

The 17c formula was put together by insurance company lawyers in Georgia and is designed to grossly under-appraise diminished value. You don’t have to agree to its use. Obtaining an independent diminished value appraisal from a reputable auto appraiser is very likely to result in a substantially higher appraisal amount. You can then use that appraisal to negotiate a higher settlement offer.

The 17c formula is flawed in several ways.

1. It uses NADA car values. NADA values are retail - most car owners don't sell their car at retail prices, they trade it in at a dealer. Additionally, NADA values are not localized. There are significant differences in valuations between different areas.

2. It applies a completely arbitrary 10% cap on diminished value.

3. It doesn't consider damage that can be repaired by replacing parts.

4. It discounts the vehicle's value for mileage twice. In other words, double-dipping.

5. It assumes cars with over 100,000 miles suffer no diminished value which is simply false.