ask. Also, I’m just a PE teacher. What do I know?

"California law is a little complicated but certainly recognizes stigma damages. Bottom line, you will need to provide a reasonable basis for the amount you seek and show your work.

There is a formula.

You will need to know:

1. Purchase price
2. Cost of repairs
3. Mileage


In California, you file diminished value claims with an insurance company. That insurance company will determine how much value the vehicle lost in the crash. Most insurance companies and their adjusters use the 17c Formula to calculate diminished value.

This diminished value formula begins with the appraisal value of your vehicle. This is the pre-accident value of your car, in its original condition. It often comes from the National Automobile Dealers Association (NADA) or Kelley Blue Book.

The appraisal value is then multiplied by 0.1. This represents the maximum diminished value that a vehicle can suffer from a crash. The number is often referred to as the base loss of value.

A damage multiplier then determines the base loss of value. The damage multiplier ranges from 0 to 1. Higher numbers are for more severe damage from the wreck:

0 – there was no structural damage or replaced panels,
0.25 – minor damage to panels or the vehicle’s structure,
0.5 – moderate damage to panels or structure,
0.75 – major panel and structural damage, and
1.0 – severe damage to the vehicle’s structure.

The resulting number is then subjected to a mileage multiplier. Older vehicles that have been driven more lose value less than new ones. The results of the damage multiplier are themselves multiplied by:

0 – for vehicles with 100,000 miles or more,
0.2 – vehicles with 80,000 to 99,999 miles,
0.4 – 60,000 to 79,999 miles,
0.6 – 40,000 to 59,999 miles,
0.8 – 20,000 to 39,999 miles, and
1 – for vehicles with less than 20,000 miles.

I just cut to the chase. I treated the adjuster with respect. I asked her what her data showed. I asked her to make an offer. I told her that it was not reasonable and told her I needed it to be better. I had some additional leverage because my kid was knocked around a little bit but just fine. They knew I was plaintiff's lawyer but I had no enemies at their company because I don't do that kind of work. You can handle it just fine yourself.

• Click here for link at https://www.shouselaw.com/ca/blog/diminished-value-claim/

But as you suggest, in the end, it, like most things, is negotiable to a degree, with this information providing a baseline for valuation. Fortunately I did not have to go through (to my knowledge) a formula in Texas, and I was also with the potential to assert a personal injury claim (which I did not), so that also provided leverage. I made sure in these situations to be sure the claims professional knew I was a defense attorney and almost always was on the other side of the discussion, which I believe also served me well.

Knute is right that diminished value is a classic element of tort damages. But there may also be rules that cap damages in a way that limits your recovery, or the insurance company may be willing to tell you to make their day on that, because it's harder to prove than repair cost.

For example, in Tennessee, diminished value in this context is recoverable as a general matter, but your total recovery for property damage can't exceed the difference between the value of the vehicle immediately before the wreck and its value immediately after the wreck (i.e., before the repair). As a practical matter that hampers lost-value recoveries.

But what the rule on this in California I haven't a clue. You could tell me almost anything and I would believe it.

You are entitled to be made whole by the tortfeasor, and if even after full repair the vehicle has less value upon resale, that should be part of your compensation. If need be, get an estimate of the "stigma" from the repair shop or your dealer to show the reduction in fair market value due to that collision and resultant stigma.

easy in CA, especially with State Farm… particularly when there are no injuries. I just don’t want I lose a significant amount of value in my special snowflake car. When I bought my first one, it had a catastrophic engine failure within an hour of leaving the lot. I was made whole and purchased another one. As dysfunctional as this sounds, I want to keep it… and it’s had issues since.

Just quantify the diminished value claim and assert it. If they say no, return here and we'll figure it out. I cannot provide anyone with legal advice, since I'm no longer an attorney. 😁