The insurance company offered me a diminished value amount based on the 17C formula. It seems too low. What should I do?
Posted: Fri Dec 11, 2020 11:30 pm
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.
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.