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