Georgia: What the Two Numbers Mean
You will see two numbers. The market range is the amount buyers would likely knock off the price of your car. The 17c figure comes from a short formula that many insurers use to set their first offer. The 17c formula started in Georgia. State Farm created the formula after State Farm Mutual Automobile Insurance Co. v. Mabry, a 2001 Georgia Supreme Court case. A federal appeals court opinion points out that a Georgia trial court later approved it.
That first offer is not final. In a 2008 directive, the Georgia insurance commissioner said the state has never approved any formula, and that insurers must look at all information that matters. When your market range is much higher than the 17c figure, the gap between the two is what you can ask for.
The Two 17c Multiplier Tables
17c begins with 10% of your car's value before the crash. That number is then multiplied by two figures between 0 and 1, known as multipliers. One multiplier covers the damage. The other covers the miles on the car.
| Damage to the car | Multiplier |
|---|---|
| Frame or structure badly damaged | 1.00 |
| Large damage to the frame and many panels | 0.75 |
| Some damage to the frame and several panels | 0.50 |
| Small frame damage and a few affected panels | 0.25 |
| Panels or bumpers only, no structural damage | 0.00 |
| Miles at the time of the crash | 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 |
A car with no frame damage, or one with 100,000 miles or more, gets $0 from 17c. But the market range can still show a real loss. The 17c formula page walks you through a full example.
Giving the Estimate to an Insurer in Georgia
In Georgia, you can file a claim with either insurance company.
- The other driver's insurer. You can ask that company to pay for the lost value in addition to the repairs. This right comes from Myers v. Thornton, a 1997 decision by the Georgia Court of Appeals.
- Your own insurer. Under Mabry, your insurer must look for lost value when it pays a claim for damage to your car.
- Your deadline. You have four years to file a lawsuit, under Ga. Code § 9-3-31.
- Your share of the blame. If you were 50 percent at fault or more, Georgia law says the other driver's insurer owes you nothing. This rule does not apply to a claim on your own policy, which follows the terms of that policy.
Is a Claim Worth It in Georgia, and When Should You Skip One?
A claim usually makes sense when the car is fairly new, has few miles on it, and the damage was significant. Kelley Blue Book says your odds of getting paid go up as the car gets newer and the miles get lower. Georgia also gives you more room than most states, because even your own insurance company has to consider the loss.
It may not be worth your time in these cases:
- The repair was minor. A study in the NAIC Journal of Insurance Regulation found that the loss often falls near 10% to 20% of the repair bill. So a $2,000 repair might mean a loss of only $200 to $400.
- The car is old with high mileage. It may barely lose any more value.
- The car was a total loss. There is no repaired car left that could lose resale value.
- You carried 50 percent or more of the fault and planned to claim from the other driver.
An independent appraisal is a written value report from a car appraiser. It usually costs $300 to $600. Pay for one when the loss you expect is clearly larger than the fee.
5 Steps to File a Diminished Value Claim in Georgia
- Get the repair done and keep your paperwork. Hang on to the repair estimate, the shop's final invoice, and photos of the damage taken before the repair.
- Gather your numbers. Run the free estimate. Then order a vehicle history report, like Carfax, that lists the crash.
- Bring in an appraiser if the loss is big. The appraiser looks over the repaired car and writes down how much value it lost. Insurance companies give that report more weight than a table.
- Put your demand in writing. Send it to the other driver's insurance company. You can also send it to your own under Mabry. Include the estimate, the repair invoice, the photos, the vehicle history report, and any appraisal. Our demand letter, a short note that names the amount you want, gives you a place to put your figure. Keep a copy for yourself.
- Push back if the offer is low. Reply in writing and mention the 2008 directive. If the claim gets stuck, file a complaint with the Georgia Office of Commissioner of Insurance and Safety Fire. You can also take your claim to magistrate court if it is under $15,000. You have four years to sue.