In the aftermath of a car accident, you may find that your vehicle isn’t worth what it used to be, even after repairs. This is known as diminished value, and it’s a loss that many drivers in Atlanta, Georgia, face each year. This blog post will guide you through the process of calculating a diminished value claim as well as how a car accident attorney in Atlanta may assist.
Understanding Diminished Value
Diminished value refers to the reduction in a vehicle’s market value after an accident. Even if the vehicle is fully repaired, the fact that it has been involved in an accident can lower its resale value. This is a loss for which you can seek compensation.
Types of Diminished Value:
- Immediate Diminished Value: This is the loss in value that results immediately after an accident, before any repairs have been made. It’s the difference between the vehicle’s pre-accident value and its value immediately after the accident.
- Inherent Diminished Value: This is the loss in value that results after a vehicle has been repaired. It’s the difference between the vehicle’s pre-accident value and its value after repairs. This is the most commonly recognized and accepted form of diminished value.
- Repair-Related Diminished Value: This is the loss in value that results from substandard repair work or from the inability to perfectly repair a vehicle.
Georgia Law on Diminished Value Claims
In Georgia, the law allows you to make a diminished value claim against the at-fault party’s insurance company. This is based on the precedent set in the 2001 Georgia Supreme Court case, State Farm Mutual Automobile Insurance Co. v. Mabry, which affirmed the right of vehicle owners to recover the diminished value from the at-fault party.
How Diminished Value Is Calculated
The calculation of diminished value is a critical step in filing a claim. It involves several steps and factors that contribute to the final figure. Here’s a detailed breakdown:
- Pre-Accident Value: The first step in calculating diminished value is determining your vehicle’s pre-accident value. This is typically the fair market value of your vehicle before the accident. You can use online resources or a professional appraiser to determine this value.
- Post-Repair Value: After your vehicle has been repaired, its value will likely be less than the pre-accident value. This is the post-repair value.
- Diminished Value: The diminished value is the difference between the pre-accident value and the post-repair value. This represents the loss in value your vehicle has suffered due to the accident.
However, calculating these values can be complex. It’s not just about the cost of repairs. Factors such as the vehicle’s age, mileage, condition, and the severity of the damage sustained in the accident all come into play.
17c Formula
In Georgia, the most commonly used formula for calculating diminished value is the “17c formula,” named after a clause in State Farm’s insurance policies. This formula takes into account the vehicle’s pre-accident value and applies a uniform damage modifier and a mileage modifier.
However, this formula is often criticized for underestimating the diminished value, and some professionals recommend using a more comprehensive method.
Given the complexity of calculating diminished value, it may be beneficial to seek the assistance of a professional appraiser or a lawyer experienced in diminished value claims. They can help ensure that the calculation is accurate and fair, and that you receive the compensation you deserve.
How a Lawyer Can Assist with a Diminished Value Claim
A lawyer can provide invaluable assistance when you’re making a diminished value claim. Here’s how:
- Understanding the Law: A lawyer can help you understand the relevant laws and legal precedents related to diminished value claims in Atlanta, Georgia.
- Calculating Diminished Value: While you can calculate the diminished value yourself, a lawyer can help ensure that the calculation is accurate and fair. They may also be able to recommend a professional appraiser.
- Negotiating with the Insurance Company: Insurance companies are often reluctant to pay diminished value claims, and they may not accept your calculated diminished value. A lawyer can negotiate on your behalf to get you the compensation you deserve.
- Taking Legal Action: If the insurance company refuses to pay a fair amount, a lawyer can help you take legal action. They can guide you through the process of filing a lawsuit and represent you in court.
Contact an Atlanta Car Crash Attorney Today!
If you’ve been in an accident in Atlanta, Georgia, and your vehicle has suffered diminished value, you have the right to seek compensation. By contacting The Weinstein Law Firm and by understanding the process and the laws can help you navigate this challenging situation and ensure that you are adequately compensated for your loss. Contact us at 770-HELP-NOW.
