Case 1
- What was the vehicle worth before the accident?
- 20000
- How severe was the damage?
- Moderate — repaired panels
- What does the odometer read, in miles?
- 30000
800.00
Open with these valuesDiminished Value Calculator
800.00
Result: 800.0017c is a rule of thumb US insurers use, not a legal standard and not a market law: ten percent of the pre-accident value, scaled down by severity and by mileage. It is widely criticised for understating real losses. Treat the figure as a starting point, never as a claim value.
Worked examples
Case 2
- What was the vehicle worth before the accident?
- 30000
- How severe was the damage?
- Severe — structural / frame damage
- What does the odometer read, in miles?
- 10000
3,000.00
Open with these valuesCase 3
- What was the vehicle worth before the accident?
- 15000
- How severe was the damage?
- Major — multiple panels, no frame
- What does the odometer read, in miles?
- 50000
675.00
Open with these valuesHow it's calculated
DV = value × 10 % × damage factor × mileage factor
- StepEnter the clean retail value the vehicle had before the accident.
- StepPick the severity; 17c scores it from 1.00 down to 0.00.
- StepEnter the odometer reading in miles, not kilometres.
- ResultRead the 17c estimate, then get an appraisal before claiming.
What this number means
17c is an industry convention, not a law
The three tables behind this estimate come from paragraph 17(c) of a US class-action settlement, which US insurers use as a rule of thumb. It is not a standard, not a market law, and it is widely criticised for understating real losses.
The odometer field wants miles
The bands are US mileage bands, so a kilometre reading would move every boundary. 30000 miles sits in the 0.80 band.
From 100000 miles the estimate is zero
The mileage factor runs 1.00, 0.80, 0.60, 0.40, 0.20 and then 0.00, so above 100000 miles the whole product collapses whatever the damage. Many people consider that hard zero a weakness of the method.
A starting point, not a claim value
The figure is a rough estimate rather than an appraisal, and insurers rarely accept a self-calculated number. Get an independent appraisal before you rely on it.
Commonly misread
This is what the insurer owes me.
It is what one industry rule of thumb estimates the resale loss to be. Whether anything is payable depends on fault and jurisdiction, and insurers rarely accept a self-calculated figure.
A car with 120000 miles must still have lost some value.
Under 17c the mileage factor is 0.00 from 100000 miles up, so the estimate reads 0.00. That is the method's own ceiling, not a statement about the market.
I put 30000 kilometres in the odometer field.
Convert to miles first, or every band boundary shifts by a factor of about 1.6. The example of 30000 miles with moderate damage on a 20000 vehicle gives 800.00.
Reference table
| Odometer (miles) | Mileage factor | On 20000, moderate damage |
|---|---|---|
| under 20000 | 1.00 | 1000.00 |
| 20000 to 39999 | 0.80 | 800.00 |
| 40000 to 59999 | 0.60 | 600.00 |
| 60000 to 79999 | 0.40 | 400.00 |
| 80000 to 99999 | 0.20 | 200.00 |
| 100000 and above | 0.00 | 0.00 |
Questions
What is diminished value?
The loss in a vehicle's resale worth after an accident, even once it is fully repaired. A car with an accident on its history report is worth less to buyers than an identical one without, because of concerns about hidden damage and stigma. Diminished value is the gap between those two prices.
What is the 17c diminished value formula?
An insurance-industry rule of thumb in three steps: take 10 % of the pre-accident market value as a base loss cap, then multiply by a damage factor from 0.00 to 1.00 and by a mileage factor. The name comes from paragraph 17(c) of a US class-action settlement, which is a convention rather than a standard.
Why is the base loss capped at 10 %?
Because the 17c method assumes the maximum diminished value is a tenth of the car's value and scales down from there. That ceiling is a convention from the original settlement, not a law of the market. Real diminished value can be higher or lower.
How does mileage affect the figure?
Under 17c higher mileage means lower diminished value, on the reasoning that a high-mileage car has already lost much of its worth to wear. The factor is 1.00 below 20000 miles, then 0.80, 0.60, 0.40, 0.20 and 0.00 from 100000 miles up. Many people consider that hard zero a weakness of the method.
Is the 17c formula accurate?
It is a rough estimate, not an appraisal, and it is widely criticised for understating real losses — especially the flat 10 % cap and the mileage factor that zeroes out at 100000 miles. Many independent appraisers use market-based methods instead, comparing actual sale prices of accident and non-accident vehicles. Use the 17c figure as a starting point, not a final claim value.
Can I claim diminished value from insurance?
Often yes, but it depends on fault and jurisdiction. Where the other driver was at fault, most US states allow a claim against their insurer; against your own policy it is usually only payable if the policy specifically covers diminished value. Insurers rarely accept a self-calculated figure, so expect to need an independent appraisal.
Sources and last check
Information, not financial advice.