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Diminished Value Report

Diminished Value Report

How to increase the diminished value recovery of your vehicle:

Being in a car accident is one of the most horrible experiences in human life. You might feel lucky enough to escape from injuries or death, or you can cover your medical expenses from health insurance.  So, what about your vehicle?  Vehicle insurance, right! Vehicle insurance will undoubtedly cover the cost of repairs for your car. Wait a minute, imagine if you want to sell the same car in the market with an accidental history, the price falls, isn’t it? If yes, how will you cover the diminished value of your vehicle? A diminished value report now comes into the game, which can help you in covering the loss of worth of your vehicle.

In this blog, we will talk about diminished value reports, and we will share some important tips on how you can uplift the DV and learn how to calculate a diminished value report.

How much-diminished value does your car have after an accident? 

Calculating the diminished value of your vehicle will need a lot of knowledge and time. The first and foremost thing you have to consider is whether you qualify for a diminished value claim.

We have combined a list of key factors necessary for qualifying for diminished value claim, and we have mentioned them below.

  • The vehicle should not be leased or bought on finance vehicle loans are acceptable.
  • The age of the vehicle must be less than seven years.
  • The vehicle must have less than one million miles.
  • It should also be free from previous accidental history, and your claim will be rejected if the vehicle has been in accidents before this one.

Moreover, You can file the claim if the other driver is at fault, as the value of the claim will be deducted from the faulty driver’s insurance. However, in some states like Georgia, you can file a diminished value claim despite your fault, which caused the accidental damage.

Diminished Value Report: How to calculate the diminished value of your vehicle?

If you want to file a diminished value claim, you have to learn how to calculate the estimated loss of value. In the first step, you will have to find out the car’s book value from the internet. Secondly, you have to add a 10% cap and mileage modifier to the amount. Depending on the damage, you will have to multiply it by 10% or 15%. Generally, this method of calculating diminished value is coined as the 17c formula. To understand this formula in detail, we have given an example below.

We have calculated the diminished value of a vehicle with a 60000 km run and moderate accidental damage.

For example, suppose the worth of your car in Kelly’s blue book or NADA is 50000 USD x 10% cap. In that case, i.e., 5000 x 0.40 mileage modifier will be 2000 USD x 0.35 for moderate damage modifier = 700 USD, which is the diminished value of your vehicle. The mileage modifier and damage modifier differs from one vehicle to the other.

One of the debatable limitations of the 17c formula is why a 10% cap is needed, as most of the experts believe that they can instead double the penalty of mileage modifier. Although the majority of insurance companies depend on this formula, it is not the best method out there to calculate the diminished value of the vehicle.

By now, you must have tried calculating the diminished value of your vehicle, but you must have picked this blog because you want to increase thevehicle’s diminished valuee. Right! So, let us move into the most important section of this blog.

How to increase the DV of a vehicle?

calculate a diminished value

Undoubtedly, all of us who have been in a car accident would showcase a lot of interest in uplifting the diminished value of our vehicle. But one thing we would like to clear is the rise in diminished value is directly proportional to the downfall in the worth. You might be able to get a good diminished value now, but the same will be deducted at the time of appraisal when you will resell the car. Nobody on earth would like to spend huge bucks on a vehicle that doesn’t have a good worth in the market.

However, you can use these tips to increase the value of your vehicle.

  • During the first step of the process, you will have to contact a diminished value expert who can help you find the right worth of your vehicle. You can reach out to professional diminished value appraisers who have the right knowledge and experience in dealing with diminished value claims.
  • Most of the time, the insurance companies will be offering the lowest price to your vehicle despite having dealt with major repairs, which is unfair. Therefore, you can negotiate if you have the diminished value report in your hand to get what you deserve.
  • One of the best advantages of going with the appraisers is knowing how to tackle arguments as they work in the industry.
  • In some diminished value cases, vehicle owners might have to file a lawsuit to solve the dispute. Going with an expert can be helpful if you don’t want to spend on lawyers’ fees.

You must have understood the significance of a well-experienced automobile appraiser during diminished value. Therefore, you will need the right proof and an expert who can capitalize on the evidence to maximize your claim.

In-person Inspection is not necessary for DV claims?

Well, in most of the diminished value cases, physical inspection of the vehicle is not necessary. Most automobile appraisers would ask for information relating to the condition, age, mileage, history, and options which will be enough to estimate the diminished value.

The need for an in-person inspection is only necessary for diminished value claims related to the quality of repairs. However, you will need to hire a credible and licensed automobile appraiser for in-person inspection if you ever feel that the quality of repairs is the reason behind the diminished value of your vehicle.

Repair-related diminished value is the garage’s responsibility:

Unfortunately, your insurance company cannot provide a diminished value claim if the quality of repairs or replacement of an original part of the vehicle is due to workmanship. Your vehicle insurance company has already paid you for the repairs, and it is not their job to deal with the quality of repairs; hence you cannot demand an insurance settlement.

So, it is paramount for you to get your repairs from a credible workshop as reputed companies stand behind their work, and in the majority of cases, they do their job right.

At the same time, if any new damage is suspected during the inspection, your insurance company might give you supplement payment to repair the damage. But they will never pay the shop or garage to repair or replace poor parts of the vehicle.

Factors to consider before selecting an automobile appraiser for a diminished value claim:

1: Which Formula will your appraiser use to calculate diminished value?

The first question you have to ask your appraiser is what formula they will use to calculate the diminished value of your vehicle. It is because the automobile market is quite versatile, and the difference in calculation methods can seriously impact the amount of the claim.

2: Ask for the license or certificates from the appraiser?

If you have any doubt regarding the appraiser’s credibility, you can either ask for their certificates or surf their name on the internet to get the right information. Hundreds of online appraisers are not certified; hence, your insurance company will not mind their opinion.

3: Ask if they can provide an appraisal certificate without inspection?

Undoubtedly, no appraiser will have an idea about the make and model of all the vehicles in the world. If the appraiser is ready to provide a certificate without an inspection, you are just wasting your time and money. How can one decide the vehicle’s worth without reviewing any photos or physical inspection of the vehicle?

4: Ask the appraisal company if they are well aware of the diminished value laws?

Before hiring an online appraiser, you can test their abilities by randomly asking them questions about different laws and the best possible solution. If they are not legitimate appraisers, they would not be able to convince you. Hence you must avoid paying them.

Looking for a well-reputed Diminished Value Appraiser in the United States?

Benchmark automobile appraisers are the leading automobile appraisers in the United States. When the concern is about automobile appraisers, they have the best experience and offer the best prices when it comes to the Diminished Value Report. Whether you want to appraise your vehicle or need someone to help you to negotiate a diminished value claim, they are the best in the business. You can also book your free consultation right now by calling 1-877-888-6113.

Diminished Value Report

Daniel “Dan” Jendrowski

Certified Public Auto Appraiser Diminish Value Experts B.C.A.A. & I.A.C.P.

For FREE Consultation with an expert Diminished Value appraiser, call


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