Does Georgia have a diminished value law?

Does Georgia have a diminished value law?

Georgia law requires insurance companies to pay the lost value of your vehicle or property when you make a diminished value claim. Under Georgia’s diminished value law, you can file a claim even when you were at fault in a car accident.

How is diminished value calculated in Georgia?

To determine diminished value, a lawyer subtracts the current value of the vehicle from the vehicle’s value prior to the car accident. The difference represents the car’s total diminished value. Your car will diminish in value regardless of whether or not you have it repaired.

Are insurance companies required to pay diminished value?

Insurance companies might be required to pay a diminished value claim, depending on state laws and who was at fault. Check these two places to find out: Your car insurance contract. Car insurance companies typically won’t cover diminished value claims if you’re at fault in an accident.

What is typical diminished value claim?

As a general rule, you should expect to recover 10% to 25% of the fair market value of your vehicle. That means if your vehicle has a fair market value of $30,000, your diminished value after an accident could be as high as $7,500.

How do you ask for diminished value?

Under formula 17c, to calculate the diminished value of your car, you would take your vehicle value and multiply it by a 10% cap. You would then apply a damage multiplier based on the damage to your car and a mileage multiplier based on your mileage.

How diminished value is calculated?

Can an insurance company deny a diminished value claim?

If you are denied a diminished value claim you do have options, but they cost money, which will negate the reason for filing a diminished value claim. Option one is to hire a lawyer. Your lawyer will challenge your denial on your behalf.

How do insurance companies determine diminished value?

Insurance companies use damage and mileage multipliers to adjust the base loss of value. If the vehicle had an odometer reading of 62,000 miles, the damage multiplier would be 0.40. Multiply 0.40 by $1,500 to determine the final diminished value of $600.

How do you calculate diminution in value claims?

Example of a diminished value calculation

1. Step One: Check your car’s value. $20,000.
2. Step Two: Calculate the base loss of value. $20,000 x 10% = $2,000.
3. Step Three: Apply a damage multiplier. $2,000 x 0.75 = $1,500.
4. Step Four: Apply a mileage multiplier. $1,500 x 0.40 = $600.