Diminished value calculator
A repaired car with an accident on its record sells for less. That lost value is called diminished value, and you can often claim it from the other driver's insurer. We run the formula insurers use, show what independent appraisals usually find, and tell you whether to skip it, ask yourself, or pay for an appraisal.
A three-year-old SUV worth $30,000 before the crash, with 15,000 miles, gets rear-ended. The frame is straightened and the repair runs $6,000. The other driver was at fault.
Worth a paid independent appraisal.
Change one thing, the mileage, and the answer flips. At 105,000 miles the formula's mileage factor is 0, the estimate is $0, and the honest answer is that it's probably not worth your time.
We start with the formula many insurers use, called 17c: 10% of the car's value before the accident, times a damage factor, times a mileage factor. Independent appraisals usually come back two to three times higher, so we show that range and decide on its midpoint.
The rules differ by state: who pays, how long you have, and what happens if you were partly at fault. See diminished value rules by state, with every rule cited to a statute or court decision.
Wondering what the crash does to your own rate, and whether you had to report it? See car accident insurance laws by state: how long an at-fault accident raises your rate, accident forgiveness, and crash reporting rules.
Georgia rule: State Farm Mut. Auto. Ins. Co. v. Mabry, 274 Ga. 498 (2001), holding that the insurer "is obligated to pay for diminution in value when it occurs." Verified 2026-10-18 against the opinion text. Appraisal ranges and fees are typical figures, not quotes.
Diminished value is the resale value your car loses because it now has an accident on its history, even after a good repair. Two identical cars, one with a clean history and one repaired after a crash, don't sell for the same price.
Usually the at-fault driver's insurance company, as part of the property damage claim. If you were at fault, there is normally no one to claim against: outside Georgia, auto policies generally don't pay diminished value on your own claim. In Georgia, the state Supreme Court has held that your own policy covers it unless the policy clearly excludes it.
Take 10% of the car's value before the accident. Multiply it by a damage factor, from 0 for no structural damage up to 1 for severe structural damage, and by a mileage factor, from 1 under 20,000 miles down to 0 at 100,000. The result is the number many insurers start from.
The formula caps the loss at 10% of the car's value, then shrinks it twice more. A car with 100,000 miles or no structural damage gets $0. Independent appraisals compare your car to real sale prices instead, and they often come back two to three times higher.
Yes. Each state sets a deadline for property damage claims, and in most states it is two to six years. Insurers can also ask for documents on a shorter timeline, so send your request in writing soon after the repair.