How to Handle a Diminished Car Accident Value Calculator in Philadelphia
Philadelphia is the largest city in the state of Pennsylvania. It is known for the Liberty Bell and Independence Hall. The city is home to more than one-and-a-half million residents. With so many people in one city, traffic accidents are an inevitability.
Many collisions result in significant physical harm to one or more of the drivers involved. But other crashes result in substantial property damage, even if no one is hurt.
If you have sustained damage to your vehicle because of another person's negligence or carelessness, you may be owed financial recovery. Contact a skilled legal professional to explore the possibility of a diminished value claim.
Most accident victims are unsure about how to accurately calculate the value of their claim. That is why it is important to find a Philadelphia car accident diminished value calculator.
Although you can find automated calculators online, it is best to speak with an accomplished accident attorney to determine the actual value of your case. The skilled team at Morgan & Morgan can guide you through the best Philadelphia car accident diminished value calculator methods.
Do not settle for less than you are owed. Fill out our simple contact form on the Morgan & Morgan website to schedule a free legal consultation today.
What Is “Diminished Value”?
Most motorists are unaware that they can file a diminished value claim after an accident.
The term “diminished value” refers to the difference between the market price of a vehicle before an accident and after. This concept is also known as “diminution of value.”
To calculate diminished value, you must subtract the post-wreck value of the vehicle from its market price before the crash.
But determining a vehicle's market worth is not an exact science. For this reason, it is important to secure the services of an experienced legal professional that can guide you through a reliable Philadelphia car accident diminished value calculator method.
A skilled attorney will carefully assess the facts of your case. They will help to ensure that your claim accurately represents the lost value from your traffic accident.
Diminished value is distinct from general depreciation. Automobiles are usually worth less as time goes on. This is due to normal wear and tear. This type of long-term gradual loss of value is known as “depreciation.”
Diminished value is the result of a single incident, such as a traffic accident.
Consider the following example of diminished value. Suppose that you hope to sell a vehicle for $15,000. Once buyers realize that the vehicle has been involved in a collision, you are only able to sell the car for $10,000.
In a case like this, the diminished value of your car is $5,000. That is the amount that the vehicle’s market price has decreased.
It is worth noting that a wrecked car will decrease in value, even if it has been fully repaired. Just the fact that it has been involved in an accident will reduce its market price.
The three most common types of diminished value are:
A vehicle’s worth will decrease in this way regardless of any repairs that are made. Even if you build the vehicle back better than it was before, it will still have an accident on its record.
All things being equal, a vehicle that has been crashed is worth less than a vehicle that has not. There is no way to recover this type of lost value.
This category of diminished value does not take repairs into account. Calculating immediate diminished value involves subtracting the price of the car directly after the wreck from its value prior to the accident.
This type of value loss can be adjusted with proper vehicle repairs.
Sometimes, the value of a vehicle will decrease as a direct result of the repairs that it undergoes. If inappropriate or shoddy repairs are done to a vehicle, it can hurt the value of the car.
This type of diminished value usually happens when a vehicle still has aesthetic or functional problems after being repaired.
No matter what type of diminished value your vehicle has sustained, it is important to consult with a knowledgeable accident attorney. Don’t just search for a Philadelphia car accident diminished value calculator online.
An automated calculator will not be able to account for all of the unique variables of your situation. But a skilled legal expert will carefully examine your case and help you fight for maximum compensation.
In most instances, you will need to file a diminished value claim with the insurance provider of the driver responsible for the crash. In a perfect world, the insurance company would note the damage that you sustained and provide adequate repayment.
Unfortunately, this is not always the case. Insurance companies are not working in the best interests of claimants.
The goal of an insurance provider is to pay as little as possible on each diminished value claim. That is why it is so important to seek legal representation.
An attorney might suggest that you secure a diminished value assessment from an independent third party. Many reliable companies provide this service. This allows you to have an unbiased estimate of the decrease in your vehicle’s worth.
This type of appraisal is not necessary in every situation. Speaking with a skilled accident lawyer will help you to determine the best path to financial recovery.
How to Use the Philadelphia Car Accident Diminished Value Calculator Method
In the United States, the majority of auto insurance providers use a diminished value calculation method known as “17c.” Although use of this method is not a legal requirement, it was established by a famous court case in Georgia.
This is the most common approach to diminished value. When you are looking for Philadelphia car accident diminished value calculator method, it is likely that you will find attorneys and insurance providers using the 17c approach.
But no matter what calculation method is used, you should not pursue repayment for diminished value without the guidance of a legal professional. A skilled attorney will know when to reject lowball settlement offers and will fight to get the compensation you deserve.
Below, we will provide a description of the 17c Philadelphia car accident diminished value calculator method.
Finding Market Value
To calculate diminished value in the standard way, you must find the prevailing market price of the vehicle in question. The most reliable resource for finding an automobile's market value is the National Automobile Dealers Association (NADA).
On their website, the NADA provides estimates based on the following information about your vehicle:
- Engine type
- Wheel type
Inputting this information will give you an accurate estimate of your vehicle’s pre-collision market price.
Base Rate Loss
Following this, you should determine the “base loss” for your collision. This number represents the maximum that you can claim in a diminished value case, according to the 17c method.
Typically, the base rate loss is set at 10% of the NADA market value estimation.
Then, the base rate loss is adjusted to reflect the physical damage from the collision. Damage is assessed by assigning a certain number and multiplying it by the base rate loss.
Typically, damage multiplier numbers follow this structure:
- 1.00 – Tremendous damage to the structure or frame
- 0.75 – Severe damage to the frame and panels
- 0.50 – Moderate harm to the panels and frame
- 0.25 – Minor damage only
- 0.00 – No sign of moderate or severe damage
These determinations are subjective. That is why it is so important to speak with a lawyer that will fight for the highest multiplier possible in your case.
The next step in this method is to adjust the value based on mileage using a multiplier. Unlike damage, higher mileage will decrease the value of your claim.
Mileage multiplier numbers are typically set as follows:
- 0.00 – Vehicles with 100,000 miles or more
- 0.20 – Vehicles between 80,000-99,999 miles
- 0.40 – Vehicles between 60,000-79,999 miles
- 0.60 – Vehicles between 40,000-59,999 miles
- 0.80 – Vehicles between 20,000-39,999 miles
- 1.00 – Vehicles with 19,999 miles or fewer
In general, higher mileage represents more wear and tear. In other words, higher mileage means more depreciation.