How to Handle Nashville Car Accident Diminished Value Calculator
Nashville sits along the Cumberland River, where it serves as the capital of the state of Tennessee. When most people think of Nashville, they think of the music. After all, Nashville is the home of the Country Music Hall of Fame and the famous Music Row district.
But the city is also home to more than 690,000 people. This leads to crowded streets and significant traffic. With so many residents, traffic accidents and collisions are all too common.
If you have been involved in a car accident in Nashville, you may be owed compensation. You can pursue financial recovery if your crash was caused by another person’s negligence.
Even if your collision did not result in an injury, you can file a diminished value claim. This type of accident claim is intended to repay crash victims for the drop in their vehicle’s value that resulted from a collision.
Most people are unaware about how to determine the value of their property damage claim. That is why you need a Nashville car accident diminished value calculator.
While you can find automated calculators online, these are not always reliable or accurate. Instead, you should consult with a legal professional to learn the most trustworthy Nashville car accident diminished value calculator method.
When you need the best legal representation in Tennessee, look no further. The skilled legal professionals at Morgan & Morgan are ready to fight for you.
Fill out our easy-to-use contact form online to arrange a no-cost initial consultation. Let us pursue the money that is rightfully yours!
Understanding “Diminished Value” Claims
Most motorists are unfamiliar with the term “diminished value.” This term refers to the amount of value lost following a collision or other accident.
Sometimes, diminished value is referred to as the “diminution of value.” Whenever a car or truck has been involved in a crash, its market value will drop to some extent.
If this loss of value was caused by someone else’s negligent driving, the victim has the right to pursue financial recovery for the damage.
To determine diminished value, you must find the difference between the vehicle’s pre-collision price and its worth after the crash. But finding the market value of a vehicle is very complex.
Because of this, there is room for negotiation in the final outcome. That is why you should hire a skilled accident attorney when pursuing compensation for diminished value.
An accomplished legal professional will use the facts of your case to argue for maximum financial recovery. Do not let uncooperative insurance providers deny you the compensation that is rightfully yours.
Differences Between Diminished Value and Depreciation
It is important to note that diminished value is not the same concept as “depreciation.” In most cases, motor vehicles are depreciating assets. That means their value steadily decreases over time due to increased use.
Diminished value, on the other hand, is a sharp reduction in market price caused by a single incident.
Suppose that someone was trying to sell a previously-crashed car for $15,000 and they found a prospective buyer. Once the buyer learned that the car had been in an accident, they might refuse to pay more than $10,000 for the vehicle.
In this example, the vehicle’s diminished market value is $5,000. That is the difference between its value before and after the collision.
When you need a Nashville car accident diminished value calculator in your case, contact the best. The skilled legal team at Morgan & Morgan has plenty of experience with diminished value claims.
A knowledgeable attorney can accurately calculate the full amount of value that your vehicle lost because of your accident.
Common Categories of Diminished Value
A vehicle’s diminished value is not only determined by the actual damage done to the car. Other elements influence a vehicle’s market value, as well.
There are three common categories of diminished value:
The immediate diminished value is calculated by finding the difference in the car’s pre-collision market price and its value after the crash without repairs.
This type of value can be mostly restored by ensuring that the vehicle is properly repaired.
Not all repairs are appropriate or of adequate quality. If a crashed car or truck is repaired in a low-quality or shoddy way, it can decrease the vehicle’s value even further.
This is especially true if the vehicle has functional problems or aesthetic damage after the repairs are done.
This is the most common category of diminished value. Unfortunately, inherent diminished value cannot be restored.
This is not dependent on the function or appearance of the vehicle. Instead, cars that have been involved in collisions tend to be worth less than those that have not.
In most cases, this is true regardless of other relevant factors.
When you’re using a Nashville car accident diminished value calculator, you will need to determine the relevant category of diminished value. A car accident attorney can help you to apply an appropriate diminished value calculation method.
How a Nashville Car Accident Diminished Value Calculator Works
Most insurance providers and many attorneys use a diminished value calculation approach called the “17c” method. While this is a common approach, the 17c method is not a requirement under state or federal law.
This approach to calculating diminished value was established in a Georgia court case. It has since become widely used across the country. As a result, it is the most common Nashville car accident diminished value calculator method around today.
The 17c calculation method consists of the following steps:
Determine NADA Market Value
The first step is to determine the standard market value for your vehicle before the accident. The best way to find such an estimate is to use the National Automobile Dealers Association (NADA) website.
When you provide the following information about your car or truck, NADA will estimate the value of your vehicle:
- Wheel type
- Engine type
The NADA website will not provide a direct diminished value estimate. Instead, this simply shows the standard market price of your vehicle.
Maximum Diminished Value Claim
The next step is determining the “base rate loss” for your vehicle. Most insurance providers set the base rate loss at 10% of a vehicle’s standard market value.
This means that this number will usually be 10% of the NADA estimate. The base rate loss is the maximum amount of recovery that you can claim according to the 17c calculator method.
Accounting for Damage
The 17c method then requires you to account for the damage to your vehicle. This is done by assigning a number between 0.00 and 1.00 and multiplying the base rate loss by that number.
This number is known as the “damage multiplier.” A higher multiplier represents more severe damage to the vehicle.
Typically, the multiplier numbers are assigned in the following way:
- 0.00 – No noticeable damage to the vehicle
- 0.25 – Only minor damage to the vehicle
- 0.50 – Moderate damage to the vehicle’s frame or panels
- 0.75 – Serious damage to the vehicle’s frame or panels
- 1.00 – Extreme structural damage to the vehicle
As you can see, judgments of the severity of property damage are subjective. Because of this, you should secure the services of a skilled attorney to argue for the highest possible damage multiplier.
Insurance providers always push for a lower multiplier. This allows them to pay less to diminished value claimants.
Accounting for Mileage
Third, the 17c method requires you to account for the mileage on the vehicle. In most cases, higher mileage represents more wear to the vehicle and more depreciation.
Often, mileage multipliers are determined in the following way:
- 0.00 – Cars with at least 100,000 miles
- 0.20 – Cars with 80,000-99,999 miles
- 0.40 – Cars with 60,000-79,999 miles
- 0.60 – Cars with 40,000-59,999 miles
- 0.80 – Cars with 20,000-39,999 miles
- 1.00 – Cars with fewer than 20,000 miles
Like the damage multiplier, this number affects the value of a claim. However, the mileage multiplier decreases the claim’s value.
Vehicles with higher odometer readings tend to be worth less than those with fewer miles.
How Can an Attorney Help in My Diminished Value Case?
A diminished value case involves a highly complex claims process. Many car accident victims accept lowball settlement offers to avoid the convoluted requirements and deadlines.
A skilled legal professional will have plenty of experience handling these types of claims. They will ensure that you do not agree to unreasonably low offers from a tightfisted insurance company.
Accomplished attorneys know that the 17c method often underestimates the amount of value that a vehicle has lost. For instance, mileage is accounted for twice in the 17c method.
The NADA general market value accounts for the vehicle’s mileage. The mileage multiplier then further penalizes the claimant for their odometer reading.
A trustworthy representative will expose these unfair disadvantages and fight for maximum compensation in your diminished value claim. When you need a Nashville car accident diminished value calculator, do not only search online.
Contact the best law firm in Nashville–Morgan & Morgan.