Part 1: Diminished Value Claims in Georgia vs. the 17c Formula

2011-Camaro-part_1Diminished value claims in Georgia vs. the 17c formula, don’t they work the same? The answer is a resounding no, not in the least. In fact, one works to the advantage of the insurance industry and the other to policyholders and those who have been in accident who are at fault or not. The most well-known case setting the 17c formulas as precedence in the insurance industry, is State Farm Mutual Insurance Company v. Mabry, 556 S.E.2d 114 (Gs. 2001). The case set an unofficial and unregulated practice where insurance  companies used the 17c formula to work in their favor and against the owner of the damaged car from an accident. In the state of Georgia “unregulated” means the Georgia Insurance Commissioner didn’t endorse nor recognize 17c as a fair tool for calculating diminished value.

In this two part series, we’ll take a look at diminished value claims in Georgia vs. the 17c formula adopted by many insurance companies. Below is a directive issued to all insurance carriers from the Georgia Insurance Commissioner (GIC) in response to the insurance industry’s abusive practice of only approving repairs for car damage resulting from an accident.

“It has come to our attention that certain carriers are incorrectly suggesting to their insureds that the Department has approved a specific formula for determining diminution of value. It also has come to our attention that certain carriers are incorrectly suggesting to their insureds that the diminished value result arrived at by the carrier’s use of a selected formula reflects the definitive amount to which the insured is entitled under Mabry and for which the insurer may be liable. The purpose of this Directive is to clarify the Department’s position as it relates to diminution of value claims.
The Department has never promulgated or produced by regulation any formula for use in the determination of diminution of value as it relates to physical damage claims nor has the Department endorsed any specific formula or method.
The Department also has never indicated that the diminished value result obtained by a carrier’s use of a particular formula or method constitutes the definitive determination of the carrier’s liability to its insured. The nature of each claim demands that carriers must take into consideration all relevant information in the evaluation of diminished value claims including, but not limited to, relevant information provided by an insured regarding diminution of value.”

Kudos to the GIC for taking action and making it crystal clear the insurance industry his office didn’t support their actions.

Putting more pressure on insurance companies are two additional statutes, O.C.G.A. 33-4-6 and O.C.G.A 33-4-7, requiring insurance companies to handle diminished value claims fairly.

Diminished value claims in Georgia vs. the 17c formula, forces insurance companies to crack open their checkbook and pay owners of cars damaged in an accident the difference of fair market value pre-accident and post-accident. has a unique patent pending formula to calculate a car’s diminished value correctly. All it takes is entering a car’s information and answering a few questions to get a number we know you’ll be happy with. We specialize in helping you file your diminished value claim and we’re happy to assist. Enter your car’s information into our calculator and answer a few questions and our patent pending formula will start crunching numbers. If you’d like to know more about 17c formula versus submitting a diminished claim in Georgia, you can find additional information here.