Diminished value is a term used to describe the reduction in the monetary worth of a vehicle after it has been involved in an accident. In Georgia, understanding how to calculate diminished value is crucial for both car owners and insurance companies. This article provides a convenient online calculator to help individuals determine the diminished value of their vehicles.

Formula: The diminished value formula takes into account the original value of the vehicle, its current value, and the mileage. The formula is as follows: Diminished Value = Original Value – Current Value – (Mileage * 0.25).

How to Use:

- Input the original value of the vehicle.
- Input the current value of the vehicle.
- Input the mileage of the vehicle.
- Click the “Calculate” button to obtain the diminished value.

Example: Suppose a car had an original value of $20,000, a current value of $15,000, and 10,000 miles. The diminished value would be calculated as $20,000 – $15,000 – (10,000 * 0.25) = $17,500.

FAQs:

- Q: What factors affect diminished value? A: Factors include the severity of the accident, repairs performed, and the age of the vehicle.
- Q: Is diminished value covered by insurance in Georgia? A: It depends on the insurance policy. Some policies cover diminished value, while others may not.
- Q: How accurate is the online calculator? A: The calculator provides an estimate. For precise values, consider consulting with a professional appraiser.

Conclusion: Calculating diminished value in Georgia is essential for individuals seeking fair compensation after a vehicular accident. Our online calculator simplifies the process, offering a quick estimate based on key factors. Understanding diminished value ensures that individuals are well-informed when negotiating with insurance companies or potential buyers.