Part 2: Diminished Value Claim In Georgia vs. the 17c Formula – Georgia Laws Put the Pressure on Insurance Companies

2011-Camaro-part_2When it comes to getting a correct diminished value claim reimbursement, Georgia is at the top beating out every state in the country making it the best state for filing. Because of the diminished value laws in place, Georgians don’t need to worry insurance companies governed by Georgia laws will issue a reimbursement on a damaged car based on the popular 17c formula used by insurance companies across America. Laws are in place obligating insurance companies to pay a claimant diminished value on first party and third party claims. This means a person can file a DV claim to recover loss damages with their own insurance company – first party – even if the policyholder is at fault. Comprehensive claims such as vandalism or an accident where a deer is hit are reimbursable as well for diminished value.

What are the Georgia courts findings on a vehicle’s diminished value after a car crash? GA Courts found the measure of damages in

Georgia courts have found that the measure of damages in a third party action is the difference between the value of the vehicle before and after the collision or other negligence or in cases where the owner repairs the vehicle, the measure is the reasonable value of labor and material used for the repairs and the value of any depreciation (permanent impairment) after the vehicle was repaired, provided the aggregate of these amounts does not exceed the value of the vehicle. Perma Ad Ideas of AM.,Inc. v. Mayville, 158 GA. App. 707 (1981).’

In other words, this means a person can recover repair costs and the vehicle’s loss in value (diminution) because of the accident.

“`It is now the law of this State that if a debtor remits to the creditor a sum of money, less than the amount [claimed] due, upon the condition, either express or implied, that it is in satisfaction of the creditor’s claim, and the latter accepts and retains the money, an accord and satisfaction results, and this is true whether the demand be liquidated or unliquidated, disputed or undisputed.’ Dixie Belle Mills, Inc. v. Specialty Machine Co., 217 Ga. 104, 107 (120 S.E.2d 771) (1961). `Where a debtor concedes his liability for part of an account which is in dispute, and tenders the sum . . . in full settlement of the account, the creditor, by accepting and using the amount so tendered, extinguishes the whole account, notwithstanding the fact that he protests at the time that the remainder of the account is still due and owing. [Cits.] The reason (for) this rule is that payment being made upon condition, the acceptance of the payment carries with it the acceptance of the condition.’ C. & S. Bank v. Union Warehouse &c. Co., 157 Ga. 434, 453 (122 SE 327) (1923). Accord, White Repair &c. Co. v. Georgia Roofing & Metal Co., 152 Ga.App. 92 (262 S.E.2d 164) (1979).” Collins v. Commercial Union Ins. Co., 154 Ga.App. 450, 451 (268 S.E.2d 685). Based on the foregoing, we conclude that the trial

[158 Ga. App. 709]

court did not err in granting summary judgment to appellee Mayville.

Judgment affirmed. Shulman, P. J., and Sognier, J., concur.

The most well-known case that set a 17c precedence in the insurance industry is State Farm Mutual Insurance Company v. Mabry, 556 S.E.2d 114 (Gs. 2001). The 17c formula works in the insurance companies’ favor and against the owner of the damaged car from an accident.

When it comes to a diminished value claim in Georgia vs. the 17c formula, insurance companies have to loosen up the purse strings and damaged car owners are assured they will be reimbursed the difference of fair market value pre-accident and post-accident. CrashCalculator.com 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. If you need help filing your diminished value claim we’re happy to assist.