How to Use the Diminished Value Calculator

1. Enter Pre-Accident Value: Input the market value of your vehicle *before* the accident occurred. You can use resources like Kelley Blue Book (KBB) or Edmunds to find this.
2. Select Damage Severity: Use the slider to indicate the extent of the damage to your vehicle. This applies a damage multiplier to the value.
3. Select Mileage: Use the slider to indicate the mileage on your vehicle at the time of the accident. This applies a mileage multiplier.
4. Calculate: See the estimated diminished value based on the Rule 17c formula.

What is Diminished Value?

Diminished Value is the loss in a vehicle's market value after it has been damaged in an accident and then repaired. Even if the repairs are perfect, the vehicle now has an accident history (often reported to services like CarFax), which makes it less attractive to potential buyers compared to an identical vehicle with a clean history. This difference in value is the "diminished value," and in many jurisdictions, you are entitled to claim this loss from the at-fault party's insurance.

Understanding the "Rule 17c" Formula

This calculator uses a simplified version of the "Rule 17c" formula, which is a common starting point in many insurance claims. The calculation has three steps:

• 1. Base Loss of Value: The calculation starts by taking 10% of the vehicle's pre-accident value (e.g., $2,000 on a $20,000 car). This is the maximum possible diminished value.
• 2. Damage Multiplier: This base loss is then adjusted for the severity of the damage. We use a standard scale from 0.00 (no structural damage) to 1.00 (severe structural damage).
• 3. Mileage Multiplier: Finally, the value is adjusted for the vehicle's mileage. A car with very low mileage loses more value than a high-mileage car. We use a scale from 1.00 (0-19,999 miles) down to 0.00 (>100,000 miles).