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17c Formula Diminished Value Calculator

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When an accident occurs, a vehicle’s value often decreases, not just physically but also in terms of its market value. This decrease is known as diminished value. The 17c formula diminished value calculator is a tool designed to estimate this loss in value. It’s named after a clause found in an insurance settlement in Georgia, which has since been widely adopted for similar calculations.

Purpose and Functionality

The primary purpose of the 17c formula is to provide a standardized method to calculate a vehicle’s diminished value after an accident. Insurance companies and vehicle owners use this formula to negotiate settlement amounts. The formula takes into account the vehicle’s pre-accident value, the severity of the damage, and the vehicle’s mileage, which are all crucial factors in determining the diminished value.

How It Works: A Step-by-Step Guide

To understand the workings of the 17c formula, let’s break down each component:

  1. Base Loss of Value (BLV): This is the starting point of the calculation. It’s determined by taking 10% of the Actual Cash Value (ACV) of the vehicle. The ACV represents the vehicle’s value before the accident. The formula here is simple: BLV = ACV * 10%.
  2. Damage Multiplier (DM): The severity of the damage is considered next. A multiplier ranging from 0.00 (no structural damage) to 1.00 (severe structural damage) is applied to the BLV. This adjusts the base value according to how much the vehicle was damaged: Adjusted BLV = BLV * Damage Multiplier.
  3. Mileage Multiplier (MM): Lastly, the vehicle’s mileage impacts its diminished value. The mileage multiplier, another value between 0.00 and 1.00, is applied to the adjusted BLV, giving the final diminished value: Diminished Value (DV) = Adjusted BLV * Mileage Multiplier.

Example Calculation

Consider a vehicle with an Actual Cash Value (ACV) of $20,000 that suffered moderate damage and has high mileage:

  1. Calculate BLV:
   BLV = $20,000 * 10% = $2,000
  1. Apply Damage Multiplier:
   Adjusted BLV = $2,000 * 0.5 = $1,000
  1. Apply Mileage Multiplier:
   DV = $1,000 * 0.6 = $600

Therefore, the diminished value of the vehicle is estimated to be $600.

Relevant Information Table

ComponentDescriptionFormulaExample Values
Actual Cash ValuePre-accident value of the vehicle$20,000
Base Loss of ValueStarting point for diminished value calculationBLV = ACV * 10%$2,000
Damage MultiplierAdjusts BLV based on the severity of damageAdjusted BLV = BLV * DM0.5
Mileage MultiplierFurther adjusts BLV based on vehicle’s mileageDV = Adjusted BLV * MM0.6
Diminished ValueFinal calculated diminished value$600


The 17c formula diminished value calculator offers a structured method for estimating a vehicle’s loss in value post-accident. While it serves as a guideline and starting point for negotiations, it’s important to remember that it may not fully compensate for the actual loss. Vehicle owners are advised to seek professional appraisal for a more accurate assessment. This calculator, therefore, is a beneficial tool for understanding and beginning the process of claiming diminished value compensation.

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