Georgia has a diminished value rule in place that relates to car accident damage. This rule is important for people who try to sell a vehicle after it was previously damaged in an accident. It is especially important to those who have their car damaged in an accident that occurs due to someone else’s negligence.
Barrios Virgüez Attorneys offers insights into diminished value and how to calculate it in Georgia. Our team can teach you about Georgia’s diminished value rule. We can also answer common questions about calculating diminished value in Georgia.
How Do You Calculate the Diminished Value of Your Car?
Insurance companies commonly use the 17c Diminished Value Formula to calculate the diminished value of a car after an accident. The formula consists of four steps:
1. Use a Credible Source to Look Up the Value of Your Car
The NADA and Kelley Blue Book websites make it easy to look up a car’s value in seconds. On each site, you will need to provide information about your car’s model, make, mileage, the extent of damage, and other pertinent information. Once you do, the site you use will provide you with an estimated value of your car.
2. Add a 10% Cap to Your Car’s Value
After you calculate the value of your car, apply a 10% cap to it. This cap is also referred to as a base loss of value. It represents the maximum amount that an insurance company will pay as part of a diminished value claim.
3. Utilize a Damage Multiplier
Multiply your car’s value, including the 10% cap value, by a multiplier that ranges anywhere from 0.00 to 1.00. Use a multiplier of 0.00 if there was no structural damage to your car. The higher the multiplier you use, the greater the damage your car has incurred, and the more its value falls.
4. Incorporate a Mileage Multiplier
Once again, you will need to apply a multiplier to determine the final value of your car. The mileage multiplier ranges from 0.00 to 1.00. Use the 0.00 multiplier if your car has more than 100,000 miles, or utilize a smaller multiplier if your vehicle has fewer than 100,000 miles.
It can be tricky to determine the diminished value of your car following an accident. A car accident attorney in Georgia can help you calculate your automobile’s diminished value. Also, your lawyer will take the guesswork out of filing a diminished value claim and collecting damages.
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What Is Diminished Value?
Diminished value refers to the difference between what a car is worth before and after an accident. A car that has been in an accident may have a lower value than one that has not. Regardless of whether a car damaged in an accident has been repaired, buyers are less likely to pay as much for the vehicle as they would for one that was not damaged in an accident.
The concept of diminished value does not apply to all cars. For example, an old car can be involved in an accident, then have many of its parts replaced with new ones. In this scenario, the car’s value may actually be higher than before the accident.
If your car is damaged and its value is diminished in a Georgia car accident caused by someone else, the at-fault party can be required to compensate you for your vehicle’s diminished value. A Georgia car accident lawyer can help you file a lawsuit against anyone responsible for your vehicle damage. From here, your attorney can build a case that compels a judge or jury to award you damages to compensate you based on your car’s diminished value.
What Is the Diminished Value Law in Georgia?
In Georgia, you have the right to claim the diminished value damages following your auto accident. You can submit a car insurance claim based on an accident caused by a negligent driver or someone else. With the diminished value claim, the at-fault party’s car insurance company will need to account for your vehicle’s difference in value pre- and post-accident.
There is no one-size-fits-all approach to using the diminished value law to your advantage in Georgia. However, you can partner with a car accident lawyer in Georgia who understands the ins and outs of state regulations. Your attorney can help you determine the best course of action to get the most damages based on your car’s diminished value.
Your Georgia car accident attorney will leave no stone unturned in helping you secure the maximum amount of economic and non-economic damages, too. Along with seeking damages based on your car’s diminished value, your attorney may encourage you to pursue damages based on pain, suffering, loss of wages, and other problems that crop up after your accident. Plus, your lawyer will help you gather evidence to support your request for damages.
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How Do You File a Diminished Value Claim with an Insurance Company?
Here are the steps you will need to complete to submit a diminished value claim to an auto insurer:
- Reach out to the insurance company to get information about the business’s process for diminished value claims.
- Use NADA or Kelley Blue Book to calculate your car’s value.
- Get photos, documents, and other evidence that highlights the extent of the damage to your car.
- Make sure that all of an insurance company’s requirements for filing a diminished value claim are met.
A Georgia auto accident lawyer is ready to answer any questions you have about filing a diminished value claim with an insurance company. Your lawyer will ensure you have everything you need to submit your claim promptly. This minimizes the risk that your claim will be denied.
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Where Should You Go for Help with Calculating the Diminished Value of Your Car?
Barrios Virgüez Attorneys offers legal help to those who want to file a lawsuit after a car accident. We can connect you with a top-notch Georgia car accident lawyer. To learn more or request a consultation, please contact us today.
Call or text 678-888-2222 or complete a Free Case Evaluation form