Personal Injury Law Blog

If you’ve been in a car accident in Illinois, chances are your vehicle is not in great shape. The question then becomes where to get it fixed, how much that is going to cost, and what is the value of your vehicle. The not-so-good news is that even though your car is repaired, it is worth less after an accident, even if it was repaired. 

If the accident you were involved in was caused by the other driver, you may file a diminished value (DV) claim. If you were responsible for the accident, you cannot file a diminished value claim for your vehicle.

The difference between the car’s worth before an accident and what it is worth afterward and all repairs represents the diminished value. Diminished value does not mean the same thing as depreciation, which means the value of your vehicle drops over time.

Although the statute of limitations in Illinois is 5 years, it is best to file this type of claim as soon as possible. Aim to file shortly after the accident, as all the evidence and documentation are right at hand. If you wait, you could lose valuable evidence, and any delay in settling your claim reduces the chances of it being equitable. The longer you wait, the more the value of the vehicle drops.

How Diminished Value Calculations Are Crafted

In general, most insurance companies in the nation use a diminished value formula referred to as 17c or a modified version of it. This comes from a Georgia court case that outlined the concept. 

The first step is to look up your vehicle’s appraised value using the National Automobile Dealers Association’s (NADA) website. To do that, you fill out the form using the year, make model, trim, features, condition, engine, mileage, wheel type, and color.

Next, the base loss of value needs to be calculated, meaning the maximum amount for a diminished value claim is 10 percent of the NADA appraisal.

Next, a damage multiplier is applied. Insurance companies use this to adjust the base loss value. This produces a diminished value total based on what the insurance company determines to be the damage.

The formula used is:

Value of Vehicle x Ten Percent Cap x Damage Multiplier x Mileage Multiplier = Diminished Value

Although this is the common formula used to calculate diminished value, it does have flaws, and it is best to discuss your case with an experienced Chicago car accident attorney at Briskman, Briskman & Greenberg. Getting a third-party physical inspection of your damaged vehicle can help you negotiate under step three of the 17c formula. At Briskman, Briskman & Greenberg, we’re here to help you get fair diminished value for your vehicle.

Contact a Chicago Car Accident Attorney Today

Our legal team is available to represent you in your Chicago car accident claim and to assist you in calculating diminished value. Briskman Briskman & Greenberg is a reputable law firm with decades of experience helping victims of car crashes obtain fair compensation for their personal injuries and diminished value claims.

When you entrust Briskman, Briskman & Greenberg with your case, you receive a high level of personal attention and the determination to get you the compensation you deserve.