GEICO Diminished Value Claim: Secrets to Maximize Payout

If you want to know how to get the best results in your GEICO diminished value claim, keep reading!

Here you’ll learn every tip and strategy that only the truthful specialist appraisers recommend for their best clients.

Learn everything about the quick process to recover every penny that is owed to you by law.

Without further ado, let’s dive right into the ultimate way to deal with GEICO.

DOWNLOAD THE: “How to Get The Best DVC From GEICO” PDF

A Brief History of GEICO

GEICO, short for Government Employees Insurance Company, was founded in 1936 to provide auto insurance to federal employees and their families.

Over time, the company opened its doors to the general public and grew into one of the largest auto insurers in the United States.

Today, GEICO is known for its affordable rates, memorable commercials (who has never seen the camel ad?) and comprehensive coverage options.

Their history of customer-centric services makes them a go-to for millions of drivers, but does that mean their diminished value claims process is straightforward?

Let’s find out!

What Is a Diminished Value Claim?

Simply put, a diminished value claim is a request for compensation after your car loses value due to an accident, even if it has been fully repaired.

After all, who wants to buy a car with an accident history?

This loss of value is something insurers like GEICO are supposed to cover if you file a claim.

According to the Insurance Information Institute:

“Diminished value is a common yet often misunderstood aspect of auto insurance claims. It’s important to know your rights and ensure you’re compensated fairly.”

If your vehicle has been in a collision, you’re entitled to claim the difference between its value before and after the accident.

But how does GEICO handle these claims?

How GEICO Handles Diminished Value Claims

Filing a diminished value claim with GEICO can be a bit of a maze, but understanding how they calculate the loss can help you navigate the process better.

1. Inspection of the Vehicle

After an accident, GEICO first assesses the damage to your vehicle.

Once repairs are complete, you can file a diminished value claim.

GEICO will typically require a formal inspection to determine the difference in your car’s value post-repair.

2. Calculating Diminished Value

GEICO, like many insurance companies, often uses what’s called the “17c Formula.”

This method, which originated in a Georgia court case, is designed to standardize how diminished value is calculated, but it’s widely criticized for undervaluing claims.

Here’s a breakdown of the 17c Formula:

• Base Value
  The insurer starts by taking a percentage of the car’s pre-accident value (GEICO almost always uses 10%).

• Damage Multiplier
  Next, they assign a multiplier based on the severity of the damage. For minor damages, this could be as low as 0.25, while significant damage could rate as high as 1.

• Mileage Factor
  Lastly, they adjust the diminished value based on your car’s mileage, with older vehicles receiving less compensation. Unfortunately, this formula often results in lower payouts than expected. As one user on Avvo noted, “GEICO offered me $4,000, but my car’s actual diminished value was closer to $10,000.” Clearly, there’s a discrepancy between what GEICO offers and what you may deserve.

3. Negotiation is Key

Don’t be afraid to negotiate! GEICO, like any insurance company, wants to save money.

They may initially offer a low amount, but you’re within your rights to contest it.

Gather your own evidence, including third-party appraisals or data on how similar cars have depreciated post-accident.

For example, hiring a service like Diminished Value of Georgia could give you a professional and accurate evaluation to present during negotiations.

Having an expert’s report is a key factor to getting a fair payout.

Step-by-Step Guide to Filing a Diminished Value Claim with GEICO

If you’ve decided to pursue a diminished value claim with GEICO, here’s a clear step-by-step guide to ensure you get the best results:

1. Document Everything After the Accident
   Take photos of your vehicle’s damage, obtain repair estimates, and keep all receipts. The more detailed your records, the stronger your case will be.
2. Submit a Diminished Value Claim
   Once your car is repaired, contact GEICO to file a diminished value claim. Be ready to provide all documentation, including your repair bills and proof of the car’s value before the accident.
3. Request an Independent Appraisal
   Don’t rely solely on GEICO assessment of your car’s value. You should hire an independent appraiser or use services like Diminished Value of Georgia, which specializes in getting you the most accurate valuation possible.
4. Negotiate Your Settlement
   GEICO will likely offer you an initial settlement that may be lower than expected. Don’t settle right away! Counter their offer by providing third-party appraisals, comparable car listings, and evidence of your vehicle’s actual loss in value.
5. Consider Legal Action if Necessary
   If negotiations stall, it may be worth consulting a lawyer, especially if the difference in valuation is significant. Some claims, like the one mentioned on Avvo, have been successful after legal intervention.

What They Don’t Tell About GEICO Diminished Value Claims

While many websites explain how to file a diminished value claim, here’s what they often leave out:

1. Pre-Accident Condition Matters
   The condition of your car before the accident plays a huge role in determining its diminished value. If your vehicle had prior damage, even minor dings or scratches, GEICO may use this to lower the payout.
2. Watch Out for Mileage Manipulation
   Insurance companies often use mileage as a tool to reduce your claim’s value. Be aware of how they calculate mileage adjustments and ensure it aligns with industry standards.
3. Keep Pushing for Transparency
   Sometimes GEICO may not provide a clear breakdown of how they calculated your claim. Push for transparency. Ask for detailed reports and ensure you understand the math behind their offer.

Maximize Your GEICO Diminished Value Claim

Filing a diminished value claim with GEICO doesn’t have to be an uphill battle.

By understanding how they calculate your car’s post-accident value and following the steps outlined above, you can significantly increase your chances of getting a fair settlement.

Remember, negotiation is your best friend—and don’t hesitate to bring in professional help when needed.

Or, just get our +20-year, 97.6% accuracy appraisal and send it to GEICO . It really is a no brainer.

Less stress, less confusion, less time wasted, and more money.

So, have you filed a diminished value claim with GEICO before? What was your experience?