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A car that’s been in an accident is less valuable than it was before the accident. This is true even if repairs return it to working order. The difference between what the pre-accident car was worth, and its market value now is known as the vehicle’s diminished value.Â
Has your car been in an accident? Use this calculator to determine the diminished value of your vehicle.
In order to calculate the diminished value of your vehicle, you will need to gather some information.
To determine the value of your vehicle, you can use websites like Kelly Blue Book and enter data like your vehicle’s make, model, mileage and location as all of these impact its cost.[1]Â
You will also need to provide an honest assessment of how much damage your car received during the accident. Was it structural or more cosmetic damage? How much of the vehicle did it impact? These will all affect your diminished value.
This should be your car’s current mileage, not the mileage at the time of the accident.Â
Once you have this information, enter it in the calculator to determine your diminished value.
Diminished value is typically calculated by your insurance company if you are seeking a diminished value claim payout after an accident. It is calculated using the 17c formula which is as follows.
So if your vehicle was worth $10,000 before the accident, the max its diminished value would be is $1,000 (10,000 X .10 = 1,000).
Next, the damages are taken into account with a damage multiplier running from .00 to 1.00. This is how the level of damage translates to the multiplier. Obviously, the larger the damages, the larger percentage is deducted from the value of the vehicle.
| Multiplier | Level of damage | |
|---|---|---|
| 0.00 | No structural damage | |
| 0.25 | Minor damage to structure and panels | |
| 0.50 | Moderate damage to structure and panels | |
| 0.75 | Major damage to structure and panels | |
| 1.00 | Severe structural damage |
Finally a mileage multiplier is added based on the total miles on your vehicle. Multiplier levels are increments of .20.
| Multiplier | Mileage | |
|---|---|---|
| 1.00 | 0 - 19,999 | |
| 0.80 | 20,000 - 39,999 | |
| 0.60 | 40,000 - 59,999 | |
| 0.40 | 60,000 - 79,999 | |
| 0.20 | 80,000 - 99,999 | |
| 0.00 | 100,000+ |
Luckily, we do the math for you, but here's an example of what our diminished value calculator does for you in seconds.
Let’s say the market value of your car according to Kelley Blue Book is $12,000. First, take 12,000 and multiply it by 10% to account for the 10% cap. 12,000 x .10 = 1,200. The new number we’re working with is $1,200. This is the maximum amount your insurer would pay out for a diminished value claim.
Some insurance companies will allow you to file a claim to recoup the losses when your vehicle drops in value after an accident. If the number from our calculator is equal or less than what the insurance company is willing to pay out, you may wish to proceed with the diminished value claim.
Learn more about how to file a diminished value claim, best practices for filing and other considerations at this resource How to File a Diminished Value Claim.
The following are common questions you might have after an accident if you are interested in determining the diminished value of your vehicle.
