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Total Loss and Diminished Value Flashcards

7 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Total Loss and Diminished Value flashcards as text

  1. In the Georgia '17c' diminished value formula, what is the base loss of value?

    Answer: 10% of the vehicle's pre-loss retail value

    The 17c formula caps the starting base loss at 10% of the pre-loss value.

  2. In the 17c formula, what mileage multiplier applies to a vehicle with over 100,000 miles?

    Answer: 0.0

    Vehicles above 100,000 miles receive a zero multiplier, eliminating DV under 17c.

  3. Which court case led to the creation of the 17c diminished value formula?

    Answer: Mabry v. State Farm

    Mabry v. State Farm (Georgia, 2001) required insurers to assess DV on first-party claims.

  4. A diminished value claim is most commonly pursued against which party?

    Answer: The at-fault driver's liability insurer

    Third-party DV claims against the at-fault liability carrier are recognized in most states.

  5. Repair-related diminished value arises primarily from which factor?

    Answer: Substandard or incomplete repairs such as poor paint match or improper parts

    Repair-related DV comes from defects in the repair work itself.

  6. Which factor typically has the GREATEST effect on the amount of diminished value?

    Answer: Severity of damage, especially structural or frame damage

    Structural damage creates the largest buyer resistance and value loss.

  7. Immediate diminished value is best defined as:

    Answer: The difference in value right after the accident and before repairs

    Immediate DV measures the value drop between pre-accident and unrepaired condition.