Calculate your car’s diminished value after an accident using the 17c formula based on market value, structural damage severity, and mileage.
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Diminished Value Formula
DV = MV \times 0.10 \times D \times M
Where:
DV is the diminished value in dollars, the amount of market value your car lost because it has an accident on its record. MV is the pre-accident market value of the vehicle in dollars. D is the damage multiplier, a value from 0.00 to 1.00 that scales the loss to how severe the structural damage was. M is the mileage multiplier, a value from 0.00 to 1.00 that reduces the loss as the odometer rises.
The fixed 0.10 factor is the 17c base cap, which limits the maximum diminished value to 10 percent of the market value. You multiply that base loss by the damage multiplier, then by the mileage multiplier, to reach the final estimate.
Damage and Mileage Multiplier Reference
Use these scales to pick the right multipliers. The damage multiplier reflects structural severity, and the mileage multiplier is set by the odometer reading.
| Damage Multiplier | Structural Damage Level |
|---|---|
| 1.00 | Severe structural damage |
| 0.75 | Major damage to structure and panels |
| 0.50 | Moderate damage to panels |
| 0.25 | Minor damage to panels |
| 0.00 | No structural damage |
| Vehicle Mileage | Mileage Multiplier |
|---|---|
| 0 to 19,999 | 1.00 |
| 20,000 to 39,999 | 0.80 |
| 40,000 to 59,999 | 0.60 |
| 60,000 to 79,999 | 0.40 |
| 80,000 to 99,999 | 0.20 |
| 100,000 or more | 0.00 |
Example Problem
Your car had a pre-accident market value of $25,000. The repair involved moderate panel damage, so the damage multiplier is 0.50. The odometer reads 45,000 miles, which falls in the 40,000 to 59,999 band for a mileage multiplier of 0.60.
First find the base loss: 25,000 times 0.10 equals $2,500. Apply the damage multiplier: 2,500 times 0.50 equals $1,250. Apply the mileage multiplier: 1,250 times 0.60 equals $750. The estimated diminished value is $750.
For a second case, take a $40,000 car with severe structural damage (1.00) and 15,000 miles (1.00). The base loss is $4,000, and both multipliers are 1.00, so the diminished value is the full $4,000 cap.
FAQ
What is diminished value?
Diminished value is the difference between what your car was worth before an accident and what it is worth after being repaired. Even with quality repairs, a vehicle with an accident on its history report usually sells for less.
Why is the loss capped at 10 percent?
The 17c formula caps the base loss at 10 percent of market value because that figure came from the Mabry v. State Farm settlement and is the standard many insurers apply. The damage and mileage multipliers then reduce that cap further.
Is this estimate the same as what an insurer will pay?
Not always. The 17c formula gives a common baseline, but insurers and independent appraisers may adjust the multipliers or use a different method, so your actual settlement can differ.