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Diminished Car Accident Value Calculator in Columbus
Car accidents happen every day. If you have been involved in a collision in Columbus, you may be owed financial compensation for your losses. This is especially true if your accident was the result of another party’s negligence.
While many traffic accidents result in physical injuries, others cause significant vehicular damage.
If your car or truck has decreased in value as the result of an accident that you did not cause, contact a skilled legal professional. An accomplished lawyer will help you to file a diminished value claim to secure the money that you are owed.
Most accident victims do not know how to calculate the value of their claims. That is why an attorney will help you through the Columbus car accident diminished value calculator method.
Reach out to Morgan & Morgan to begin the claims process. Our caring attorneys will fight hard to get the recovery that you need to move forward.
To get started, just complete the contact form on the Morgan & Morgan website. Our firm will happily provide you with a no-cost case evaluation to discuss the details of your diminished value claim.
Understanding the Concept of “Diminished Value”
Most people are unfamiliar with the term “diminished value.” Diminished value is also known as “diminution of value.”
It is calculated as the difference between the market worth of your car prior to and following a collision. To find the diminished value, you must subtract the car’s post-wreck worth from its pre-wreck price.
But calculating the before-and-after versions of the market price can be complex. That is why a Columbus car accident diminished value calculator is useful.
A knowledgeable legal professional will examine the facts of your case to ensure that you are pursuing the correct amount. You should not accept a payment from the relevant insurance provider that is below the actual diminished value of your car.
It is worth noting that diminished value is different from “depreciation.” Both represent a loss in value, but they are distinct.
Depreciation occurs gradually over time. Normal use and wear result in a decrease in value of a vehicle over the long term. In contrast, diminished value is the result of a single event, like a collision.
To better understand this type of value loss, consider the following example. Suppose that you hope to sell your car for $10,000. You find a buyer that is interested. But when the buyer learns that the car was previously involved in a crash, they are only willing to pay $8,000.
In this instance, the diminished market value of your vehicle is $2,000. The value of your vehicle does not only diminish as the result of functional or aesthetic problems. Even if a car has been repaired, the perceived value will drop following an accident.
There are three primary categories of diminished value, which we’ll explore in depth below.
Inherent Diminished Value
This category refers to the decrease in value just because a vehicle has been involved in a crash. Fully repairing the vehicle will not restore this type of value.
A vehicle that has been involved in a collision is typically worth less than a car that has not. This is true regardless of any other factors.
This is the most common type of diminished value.
Immediate Diminished Value
Immediately following an accident, the vehicle’s value may drop before the owner has made necessary repairs.
This type of diminished value is determined by finding the difference in market value before the collision and after the crash, but before repairs.
Repair-Related Diminished Value
The final category of diminished values relates to vehicle repairs. Low-quality repairs may influence the market value of a car or truck.
Poor repairs can further decrease the value. This is especially true if the vehicle still has functional or cosmetic damage after the repair process is complete.
Rather than looking for a Columbus car accident diminished value calculator online, speak with a trusted legal professional. An expert can provide you with an accurate estimate of the kinds of diminished value that are relevant in your case.
After an accident in Ohio, you will likely need to file a diminished value claim with the at-fault driver’s insurance provider. Unfortunately, insurance companies are not working in your best interests.
In some cases, it is useful for the claimant to seek a third-party assessment of the decreased value of their vehicle. Many businesses offer this service.
Professional auto assessments take into account many relevant elements of the car’s history to provide an accurate appraisal. Whether you seek a third-party assessment or not, it is crucial to find a skilled car accident attorney to represent you.
Columbus Car Accident Diminished Value Calculator Method
Most car insurance companies in the U.S. rely on a method for calculating diminished value known as “17c.” The precedent for using this formula was set by a court case in Georgia.
Although the use of the 17c method is common, it is not a requirement. Insurance providers may use other types of Columbus car accident diminished value calculator methods.
We will discuss some potential problems with the 17c method below. No matter what approach is used, you should not pursue a diminished value claim without the guidance of an experienced legal expert.
To use the 17c Columbus car accident diminished value calculator method, take the following steps:
Determine the NADA Value
The first step in calculating diminished value is to find the listed market price of your vehicle. The most reliable way to find this information is to visit the National Automobile Dealers Association (NADA) online.
The NADA website will estimate the market value of your car when you input the following information:
- Wheel type
Finding an estimate through the NADA website will give the best approximation of the market value of your vehicle.
Determine Base Rate Loss
The second element in the 17c Columbus car accident diminished value calculator method is to determine the base rate loss.
Usually, this base loss is limited to no more than ten percent of the NADA assessment. In other words, most diminished value claims are capped at one-tenth of the NADA estimate.
Multiplying for Damages
Next, the base loss is adjusted to account for the damage that the vehicle sustained during the accident. Accounting for damage involves using a “multiplier” number.
The multiplier number is determined by the severity of damage to the vehicle. Typically, the damage multiplier varies between 0.00 and 1.00.
When the number is determined, it is multiplied by the base rate to account for the vehicle’s damage.
Usually, the damage multipliers are set as follows:
- 1.00 – Extreme damage to the vehicle’s structure
- 0.75 – Serious frame or panel damage
- 0.50 – Moderate damage to the frame or panels
- 0.25 – Minor harm to the structure or panels
- 0.00 – No serious damage
A skilled car accident lawyer will fight for the highest damage multiplier possible. Insurance companies often push for a low number. This allows them to pay less.
When you need an accurate estimate of diminished value, contact an attorney.
Multiplying for Mileage
Like the damage multiplier, the mileage multiplier adjusts the value to account for relevant factors in a diminished value case. However, the mileage multiplier decreases the diminished value payment.
Higher mileage usually signifies more wear and tear on the car. Vehicles with higher odometer readings have usually depreciated somewhat.
To account for mileage, the relevant number is multiplied by the adjusted base loss amount. Common mileage multiplier standards are:
- 0.00 – Odometer readings of 100,000 or more
- 0.20 – From 80,000-99,999 miles
- 0.40 – From 60,000-79,999 miles
- 0.60 – From 40,000-59,999 miles
- 0.80 – From 20,000-39,999 miles
- 1.00 – Odometer readings from 0-19,999
Although mileage and age are not the same, older cars usually have higher odometer readings. Because of this, older cars tend to have lower market value than new vehicles.
Common Issues With 17c Diminished Value Assessments
Most insurance companies use the 17c method for determining diminished value. But this method often underestimates the amount that claimants are owed. There are several reasons for this.
First, fair market value is determined by many factors. For instance, the automobile market is different in separate regions of the country. The 17c method does not account for geographical location.
Second, the base loss rate of 10% is arbitrary. The 10% standard was used in the Georgia case that established the 17c method.
Third, this method of calculating diminished value accounts for the vehicle’s mileage twice. The mileage is considered in the initial NADA evaluation. It is then counted against the diminished value amount through the mileage multiplier.
A skilled attorney will take these disadvantages into account when estimating the value of your claim. Do not let a tightfisted insurance provider deny you the full recovery that you are due.