Calculate your vehicle's loss in value after an accident. Even with perfect repairs, accident history reduces resale value.
3 Calculation Methods
Third-Party Claims
Free Demand Letter
Vehicle Information
Vehicle Details
Damage Information
Diminished Value Estimate
Enter your vehicle information and click "Calculate Diminished Value" to see estimates
Understanding Diminished Value in California
When your vehicle is damaged in an accident caused by someone else, you're entitled to more than just repairs. Even after perfect repairs, your car's market value is permanently reduced because it now has an accident history. This loss is called diminished value, and in California, you can claim it from the at-fault driver's insurance.
Why Does Accident History Reduce Value?
Would you pay the same price for two identical cars if one had been in an accident and one hadn't? Neither would anyone else. Studies show that vehicles with accident history sell for 10-25% less than comparable clean-history vehicles, even after quality repairs. Reasons include:
Stigma - Buyers are wary of previous damage, even if repaired
Carfax/AutoCheck reports - Accident history permanently appears on vehicle history reports
Hidden damage concerns - Buyers worry about unseen issues that may surface later
Resale difficulty - Dealers offer less for trade-ins with accident history
Types of Diminished Value
There are three recognized types of diminished value:
Inherent Diminished Value - The automatic loss in value simply from having accident history, even with perfect repairs. This is what most claims focus on.
Repair-Related Diminished Value - Additional loss when repairs don't fully restore the vehicle (visible imperfections, color mismatch, etc.)
Immediate Diminished Value - The difference between pre-accident value and damaged value before repairs (rarely claimed)
California Diminished Value Law
California recognizes diminished value as a legitimate property damage claim. Key points:
You can claim diminished value from the at-fault party's insurance (third-party claim)
You generally cannot claim diminished value from your own collision coverage (first-party claim)
There's no statutory formula - you must prove your actual loss
Claims are subject to the at-fault driver's property damage liability limits
Diminished Value Calculation Methods
This calculator uses three different methods to estimate your diminished value. Each has strengths and limitations.
1. 17c Formula (Georgia Method)
17c Formula
Diminished Value = Base Value x 10% x Damage Modifier x Mileage Modifier
Developed from Georgia insurance regulations. Provides a conservative floor estimate.
The 17c Formula caps diminished value at 10% of the vehicle's base value, then applies modifiers for damage severity and mileage. While widely used as a starting point, it's criticized for systematically undervaluing claims.
Damage Modifiers (17c)
Damage Level
Modifier
Description
Minor
0.75
Cosmetic damage only, no structural impact
Moderate
0.50
Panel replacement, no frame damage
Severe
0.25
Structural damage, airbags deployed
Major
0.00
Frame damage, rebuilt title
Mileage Modifiers (17c)
Mileage Range
Modifier
0 - 19,999
1.00
20,000 - 39,999
0.80
40,000 - 59,999
0.60
60,000 - 79,999
0.40
80,000 - 99,999
0.20
100,000+
0.00
2. Formula Method (Before/After)
Formula Method
Diminished Value = Pre-Accident Value - Post-Repair Value
Most accurate when you have actual market comparisons.
This method calculates the actual difference between what your car was worth before the accident and what it's worth after repairs. The challenge is determining post-repair value, which typically requires comparable sales data or a professional appraisal.
Our calculator estimates post-repair value using industry data on typical value reductions based on damage severity:
Minor damage: 5-10% reduction
Moderate damage: 10-15% reduction
Severe damage: 15-25% reduction
Major/Rebuilt: 30-50% reduction
3. Market Analysis Method
Market Analysis
Diminished Value = Pre-Accident Value x Market Adjustment Percentage
Based on market studies of accident history impact on resale values.
This method uses market research on how accident history affects vehicle prices. Studies consistently show vehicles with accident history sell for 10-25% less than comparable clean-title vehicles. This calculator applies market-based percentages adjusted for damage severity.
How to Claim Diminished Value in California
Step 1: Document Everything
Start building your claim immediately after the accident:
Get the police report showing the other driver was at fault
Photograph all damage before repairs
Keep all repair estimates, invoices, and receipts
Document your vehicle's pre-accident condition and value (photos, maintenance records)
Get a copy of the Carfax/AutoCheck report showing the accident now appears
Step 2: Calculate Your Claim
Use multiple methods to support your claim:
Use this calculator for initial estimates
Research comparable sales (clean vs. accident history)
Consider getting a professional diminished value appraisal ($250-$400)
Step 3: File Your Claim
Contact the at-fault driver's insurance company:
File a separate diminished value claim (don't bundle with repairs)
Submit your documentation and demand letter
Be prepared for initial denial or low offer - this is normal
Step 4: Negotiate
Insurance companies often deny or lowball diminished value claims initially:
Respond to denials in writing with additional documentation
Point out flaws in their valuation method (especially if they use only 17c)
Provide comparable sales data showing value impact
Consider a professional appraisal if negotiations stall
Step 5: Escalate if Necessary
If the insurance company won't pay fair value:
File a complaint with the California Department of Insurance
Consider small claims court (up to $12,500)
Consult with an attorney for larger claims
Tips for Success
Act quickly - File your claim as soon as repairs are complete
Be persistent - Initial denials are common; don't give up
Document the market - Show actual listings of similar vehicles with/without accident history
Get an appraisal - Professional appraisals significantly strengthen claims
Know your limits - Claims are limited to the at-fault driver's property damage coverage
Frequently Asked Questions
Generally no. In California, you typically cannot recover diminished value from your own collision or comprehensive coverage (first-party claim). Diminished value is claimed from the at-fault party's liability insurance (third-party claim). Check your policy for specific exclusions.
The statute of limitations for property damage claims in California is 3 years from the date of the accident. However, it's best to file your diminished value claim as soon as repairs are complete while the accident is recent and documentation is fresh.
No. A diminished value claim is filed against the at-fault driver's insurance, not your own. Since you're the victim making a third-party claim, it should not affect your insurance rates. The accident might be reported regardless, but your rates shouldn't increase if you weren't at fault.
Initial denials are common. Respond in writing with additional documentation supporting your claim. Include comparable sales data, a professional appraisal if possible, and point out weaknesses in their denial reasoning. If they continue to refuse, you can file a complaint with the California Department of Insurance or pursue the claim in small claims court.
While not legally required, a professional diminished value appraisal ($250-$400) significantly strengthens your claim. Appraisers have access to market data, understand valuation methods, and provide documentation that insurance companies take seriously. For larger claims, an appraisal often pays for itself many times over.
Yes, though the value may be lower. While the 17c formula penalizes high-mileage vehicles heavily (even zeroing out at 100k+ miles), the actual market impact depends on the specific vehicle. Classic cars, trucks, and some well-maintained vehicles retain significant value regardless of mileage. Use the Formula Method or Market Analysis for a more accurate picture.
Your diminished value claim, combined with repair costs, is limited to the at-fault driver's property damage liability coverage. If total property damage exceeds their limits, you may need to pursue the driver personally, use your own underinsured motorist property damage coverage (if available), or prioritize repair costs over diminished value.
Yes. Diminished value applies to any vehicle with accident history, even without title branding. A salvage title means the vehicle was declared a total loss; a rebuilt title means it was repaired after being totaled. Both result in severe diminished value (often 30-50% or more), but regular accident history without title branding also causes meaningful diminished value (typically 10-25%).
Related Demand Letters
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