Most insurance companies use a method called the 17c formula (named after a Georgia court case) to calculate diminished value — and it almost always undervalues your claim. The 17c formula starts with your vehicle's NADA retail value, caps the DV at 10% of that value, then applies a series of multipliers that reduce the amount based on damage severity and mileage. The result is often a fraction of your vehicle's actual diminished value. For example, a vehicle with a real DV loss of $5,000 might be calculated at only $1,200 using the 17c formula.
The 17c formula has been widely criticized by appraisers, consumer advocates, and courts because it has no basis in actual market data. It doesn't consider comparable sales, real buyer behavior, or the specific impact of accident history on your vehicle's make and model. It is simply a mathematical formula designed to produce low numbers. Arizona courts are not bound by the 17c formula, and a proper market-based DV appraisal will almost always demonstrate a higher loss than what the insurance company calculates.
Orlando Auto Body's free $450 Diminished Value Appraisal Packet uses the market-based approach — comparing actual sales data for vehicles with and without accident history to determine the real-world price difference. This is the same methodology used by independent appraisers, expert witnesses, and accepted by Arizona courts. When an insurance company offers you a lowball DV number, our documentation gives you the evidence to negotiate or escalate. Call today and let us build the strongest possible case for your claim.