How Much Diminished Value Should You Expect to Recover?
Aug 30, 2025
When your car has been in an accident, even after professional repairs, its resale value often drops.
This loss is known as diminished value, and many vehicle owners are shocked at how much less their car is worth simply because it now has an accident history.
Filing a diminished value claim allows you to recover compensation for this financial loss, but how much can you realistically expect to receive?
Factors That Influence Your Diminished Value Settlement
Factor | How It Impacts Your Claim | What This Means for You |
|---|---|---|
Age of Vehicle | Newer cars generally get higher settlements; older vehicles with high mileage get less. | If your car is less than 5 years old, you’re more likely to receive stronger compensation. |
Severity of Damage | Major structural or frame damage greatly increases diminished value. | Even high-quality repairs cannot erase accident history for severe damage. |
Repair Costs | Higher repair bills usually translate into larger diminished value claims. | Expensive repairs show insurers your car has lost significant value. |
Vehicle History Report | A clean Carfax before the accident makes your claim stronger. | Buyers and insurers know a “first accident” reduces value more than repeat losses. |
Market Demand | Popular makes and models retain more resale value. | Vehicles in high demand may see a higher diminished value recovery. |
The amount of diminished value you can recover depends on several key factors. Insurance companies carefully analyze each claim, and your payout will often hinge on the following:
Age of the Vehicle
Newer cars typically qualify for higher diminished value settlements.
Older vehicles, especially those with higher mileage, may see lower payouts since depreciation already impacts their value.
Severity of Accident Damage
Cars that sustain major structural or frame damage often experience significant diminished value.
Minor cosmetic repairs, such as a scratched bumper, generally result in smaller claims.
Repair Costs
Insurance adjusters place a heavy weight on the cost of repairs.
The higher the repair bill, the more substantial your diminished value claim is likely to be.
Vehicle History & Market Demand
A clean Carfax history report prior to the accident strengthens your case.
Popular makes and models with higher resale demand also tend to retain more diminished value.
Typical Range of Diminished Value Recovery
As a rule of thumb, diminished value usually falls between 10% and 30% of your vehicle’s fair market value before the accident.
Example: If your car was worth $25,000 before the crash, your diminished value could reasonably range from $2,500 to $7,500, depending on damage and market conditions.
How Insurance Companies Use Formula 17c to Undervalue Diminished Value Claims
One of the most common methods insurers use is the 17c formula, first developed during the Mabry v. State Farm lawsuit in Georgia.
Today, many insurance companies still apply this formula, but it often results in undervalued settlements.
How the 17c Formula Works
The insurer takes 10% of your car’s book value as the maximum diminished value.
They then apply mileage and damage multipliers to reduce that number further.
The result is usually a much lower payout than the true market-based loss.
For example, if your car’s pre-accident book value is $30,000, the 17c formula caps the starting diminished value at $3,000.
After applying modifiers, your claim may shrink to just $1,000–$1,500, even if the real-world diminished value is significantly higher.
This is why relying solely on the 17c formula works in the insurance company’s favor, not yours.
Why a Professional Diminished Value Appraisal Is Critical
Instead of accepting an undervalued settlement, you can strengthen your claim with a professional diminished value appraisal.
At My Fair Claim, we go beyond generic formulas:
We perform a Premium Appraisal Service tailored to your car and local market.
Our reports include:
Comparable vehicle sales data
Pre-accident and post-accident fair market values
Carfax history verification showing your car had no prior losses
These details matter because insurance companies consider market comparables and verified history reports when reviewing claims.
A premium appraisal gives you negotiating power and often leads to much higher settlements.
Let My Fair Claim Be Your Diminished Value Advocate
Don’t let insurers minimize your loss. For as little as $29.95, My Fair Claim provides an expert diminished value report that:
Breaks down exactly how much money you should demand from the at-fault insurance company
It is backed by years of experience in total loss, diminished value, and car appraisal services
Carries weight with insurance adjusters and holds up in legal proceedings if needed
Whether you’re up against a large national insurer or a smaller regional carrier, we’ll stand by you every step of the way.
Our goal is to ensure you recover the maximum compensation you deserve.