Car accidents often lead to physical injuries and financial constraints relating to medical treatment and property repairs. An often-overlooked aspect of car accidents is the diminished value of your vehicle.
Georgia law allows car owners to claim for the diminished value of their vehicle subject to certain conditions. A Monroe car accident lawyer explains these conditions below.
Understanding Diminished Value
Diminished value refers to the loss of a vehicle’s value after it has been involved in an accident. Even if a vehicle has been repaired to the same condition it has been in before the accident, the inherent value of the vehicle has been lost. The difference in value of the vehicle before being involved in the accident and after the accident and subsequent repairs, is known as the diminished value.
Georgia’s Diminished Value Law
Georgia law mandates insurance companies to compensate for the diminished value of your property following an accident. However, claimants must meet certain qualifications to claim this compensation.
Requirements to Qualify for a Diminished Value Claim
In Georgia, not all vehicles qualify for diminished value recovery. To qualify for a diminished value claim, you must meet the following conditions:
- Age and Market Value of Your Vehicle: Your vehicle must have a market value of at least $7,000 and be less than ten years old.
- Title Requirements: Your vehicle cannot have a rebuilt or salvaged title.
- Mileage Requirements: Your vehicle must have done less than 30,000 miles per year. If this is exceeded your vehicle will have “excessive mileage” and will not qualify for a diminished value claim.
- Damage History: If your vehicle has extensive damage as a result of being involved in more than one accident, your claim may be denied.
- Release of Liability: Your claim may be disqualified if you have ever signed a release of liability form.
To calculate the diminished value in Georgia, one popular method is the 17c formula. This approach considers the vehicle’s make, model, age, and damage severity. The formula works as follows:
Determine the Pre-Accident Value of Your Vehicle
This is typically the fair market value of your vehicle just before the accident. You can use resources like the National Automobile Dealers Association (NADA) guide to find this value.
Apply the 10% Cap
Georgia law places a 10% cap on diminished value claims. In order to calculate the maximum limit of your claim, multiply the pre-accident value of your vehicle by 10%. For example, if your vehicle’s pre-accident value was $18,000, the base loss of value is $1,800.
Apply the Damage Multiplier
This is based on the severity of the damage to your vehicle. The damage multiplier ranges from 0 (only minor cosmetic damage) to 1 (severe structural damage).
Apply the Mileage Multiplier
This is based on the mileage of your vehicle. The mileage multiplier can range from 1 (0-19,999 miles) to 0.4 (90,000 miles or more).
The product of these calculations gives you the diminished value of your vehicle. It is recommended to consult with a professional appraiser or a car accident attorney from The Weinstein Law Firm for accurate results. We can help ensure that the calculation is done correctly and that you receive the compensation you deserve.
A Monroe Car Accident Attorney Can Help You File a Claim
To file a diminished value claim in Georgia, you must prove your loss and submit your proof to the insurance company. This will include an accident report, photos and videos of the accident as well as vehicle service documents.
Once you submit a diminished value appraisal report from a competent appraiser, most insurance companies will make a settlement offer. It’s important to note that under Georgia law, a diminished value claim must be submitted within four years from the date of the accident.
Consult with a Monroe car accident attorney at The Weinstein Law Firm at 770-HELP-NOW to ensure you achieve the best outcome for your claim!
