Every driver and vehicle owner in Georgia needs to know about and understand the 17c formula. It plays a crucial role in insurance if you get into an accident.

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What Is the 17c Formula?

 

If your vehicle is involved in an accident in Georgia, a Georgia insurance adjuster will likely use the 17c formula to calculate and estimate your vehicle's recent diminished value. It can directly influence how much compensation you may receive for the vehicle even if it's repaired. The 17c formula stems from the 2001 Supreme Court of Georgia case of State Farm Mutual Automobile Insurance Company vs. Mabry, specifically paragraph 17 section C.

 

How Does it Work

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The 17c formula in Georgia starts with determining the value of your vehicle before the accident. You can use Kelley Blue Book to find out this information.

One of the most important things you need to know about 17c is that there's a 10% cap involved, which is the maximum claim amount your insurance company will pay. The cost of damages is irrelevant to this amount. For example, if your vehicle was worth $34,720 before the accident, and there's a 10% cap, the max payout is $3,472. This is the base loss of value.

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Next is determining the damage modifier, which ranges on a scale from 0 for absolutely no structural damage to 1 for severe structural damage (with increments of 0.25). Your car's mileage is also taken into account via the mileage modifier, which is on a 0 (100,000+ miles) to 1 (0 to 19,999 miles) scale with increments of 0.20. These cause the calculated estimated base loss of value amount to decrease.

 

Let's say your car has minor damage and 40,264 miles at the time of the accident. The calculation is $3,472 base loss of value x 0.25 damage modifier = $868 x 0.60 mileage modifier = $520.80. The $520.80 is considered the diminished value of your vehicle. This low amount could make it more challenging to trade in or sell your vehicle in the future for a decent amount. 

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How to Challenge a Low Estimate

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Contact Expert Asset Protection if you disagree with the low 17c formula estimate you received. Fill out the form on our website, email us or call today at 470-935-0038 for more information.