If you’ve been in an accident and got your car repaired, this video is specifically for you. You’re probably wondering if your car is really worth the same as before the crash, and the honest answer is no – but you can get compensated for that loss. You’ve had your car repaired, but you know it’s worth less now because of that accident history, and it’s simply not fair that you should have to take a financial loss just because someone else hit you. Diminished value is your car’s pre-accident fair market value minus its post-repair fair market value. In Nevada, you can recover diminished value from the at-fault driver’s insurance, but standard personal policies typically exclude diminished value for first-party claims. In the next few minutes I’ll show you what evidence matters, how insurers calculate offers, and the exact first steps to demand real money back. But first, there’s something important about where to file your claim that most people get wrong.
Why Your Own Insurance Won’t Pay (And What That Means)
Here’s the reality most people discover too late about their own insurance. Your own insurance company won’t pay you a single dollar for diminished value, even though you pay them every month for coverage.
Don’t file with your own insurance until you check these facts — otherwise you risk waiving rights. They are absolutely not looking out for your best interests, and frankly, they’re counting on you getting worn down. What I’m about to share is precisely how we’ve helped countless clients push back against these tactics to get every penny they’re owed.
In Nevada, diminished value works completely different than you expect. Here’s what that means in plain English. Nevada rules let insurers exclude diminished value in typical policies. Your collision coverage that you pay for every month excludes diminished value completely. Nevada allows insurers to limit their obligation to restoring pre-loss physical condition, and most standard collision policies exclude diminution of value — so you usually cannot recover diminished value from your own carrier.
This creates a trap that catches almost everyone. You assume you’re protected because you have full coverage. You file with your own insurance and expect them to handle everything. Then you find out you have to go after the other driver’s insurance company instead. These are the people who have zero reason to be fair to you.
Insurance companies wrote their policies this way on purpose. They know most people will give up when they realize they can’t just file with their own company. The process becomes more complex and intimidating.
But here’s something most people don’t realize. This legal structure actually works in your favor once you understand it. Third-party claims often yield higher payouts than first-party claims. The other insurance company has different rules and different limits.
You might be wondering about fault percentages. If you’re more than fifty percent at fault, you can’t collect diminished value at all. If you’re fifty percent at fault or less, you can still collect, but any damages get reduced by your percentage of fault.
Insurance companies count on you not knowing this distinction. They hope you’ll file with your own company, get denied, and just give up. Or they’ll tell you that you were partially at fault so you can’t collect anything. Both of these are tactics designed to avoid paying you.
Don’t sign a final property release until you’ve checked diminished value. Understanding where to file your claim is your first weapon against these tactics. Now that you know where to file your claim, you need to understand what makes the difference between getting paid and getting denied.
The Evidence That Actually Wins Cases
Insurance companies often respond quickly to diminished value claims and may deny or make a low initial offer using internal formulas, so you need to be prepared with solid evidence that stops them cold.
If you’re feeling completely overwhelmed and lost after your accident—with no idea what steps to take, or how to deal with the endless paperwork and calls from insurance companies—you are not alone. I hear this frustration every single day from people just like you, and in this video, I’m going to walk you through exactly how to cut through that confusion so you can start feeling in control again.
Diminished value claims live or die based on documentation. Not just any paperwork, but specific proof of value loss. Here’s the problem most people face. They submit their repair bills and expect payment. They don’t realize insurers need completely different evidence to calculate value loss.
Let’s break down the essential evidence package in order of priority. First, get an independent diminished value appraisal—this is your best evidence for larger claims because it provides professional documentation of actual value loss. Second, gather pre-accident KBB and NADA values for your exact car. Third, collect your final repair invoice and photos of damage—these create the foundation showing what happened. Fourth, get dealer trade-in quotes from multiple dealerships in writing—these prove actual market impact when dealers won’t pay full book value for accident cars. Fifth, obtain a Carfax report showing the accident—this proves the stigma will appear to future buyers permanently.
Photos of damage and your final repair invoice create the foundation. But they aren’t enough alone. Insurance companies will say repairs made your car good as new. You need more proof than that.
Here’s something powerful most people miss. Get dealer trade-in quotes from multiple dealerships. Have them give you written quotes for what they’d pay for your car right now. These quotes demonstrate real-world value drops in black and white numbers.
Gather this evidence as soon as reasonably possible after repairs are complete—sooner is better—and remember Nevada’s statute of limitations gives you three years to file a claim or suit. In Nevada, owner testimony and KBB and NADA price guides are admissible evidence in court, which strengthens your position significantly.
This evidence package transforms weak claims into undeniable demands. Insurance adjusters can’t argue with independent appraisals, dealer quotes, and market data that all point to the same conclusion. But even with perfect evidence, you still need to understand how insurance companies calculate their offers.
Cracking the 17c Formula (And Why It’s Rigging the Game)
There’s a secret formula insurance companies use to calculate diminished value, and it’s designed to pay you as little as legally possible. They are absolutely not looking out for your best interests, and frankly, they’re counting on you getting worn down.
The insurance industry uses something called the 17c formula as their standard calculation method. Here’s how it actually works in three steps. First, the insurer starts with ten percent of your car’s pre-accident value as a base loss cap. Second, they apply a damage severity multiplier between zero and one point zero based on how bad the damage was. Third, they apply a mileage multiplier that gets worse as your odometer goes up. Then they multiply all these together to get your offer.
Here’s what most people don’t know. This formula came from a Georgia class-action settlement years ago. It’s not a Nevada legal standard. Insurance companies just present it like it’s some official law you have to accept. But it’s simply an insurer tool that often understates actual market loss.
Let’s look at a real example. Say your car actually lost significant value after the accident. The 17c formula starts with your car’s original thirty thousand dollar value. Ten percent gives you three thousand as the base cap. Moderate damage cuts that to two thousand four hundred. High mileage cuts it to one thousand eight hundred. You just went from real market loss to under two thousand dollars.
High-mileage vehicles get destroyed by this system. Luxury cars get shortchanged too because the ten percent cap doesn’t reflect how much expensive cars actually drop in value after accidents. Independent appraisals consistently show 17c undervalues diminished value by forty to sixty percent compared to what cars actually sell for in the real market.
Here’s your strategy. Never accept the first 17c offer. Immediately challenge any 17c-based low offer with your independent appraisal and dealer trade-in quotes. When you speak to an adjuster, use this script: “I have an independent diminished-value appraisal and dealer quotes showing a higher market loss—please re-evaluate.”
If the insurer won’t budge, you can sue in small claims court for amounts up to ten thousand dollars. Filing often moves negotiations forward because insurers want to avoid litigation costs.
You can challenge this formula with better evidence. Insurance companies count on you not knowing this. Now you understand exactly how they calculate those lowball offers and how to fight back with real market data.
Conclusion
Getting fair compensation requires following the right steps in the correct order. Here’s what to do next. First, get an independent diminished value appraisal if your likely loss is significant. Second, assemble your complete evidence package with pre- and post-repair proof including KBB and NADA values, repair invoice, Carfax report, and dealer quotes. Third, submit a written demand to the at-fault carrier and be prepared to negotiate or file in small claims court.
Two critical warnings. Don’t sign any final property damage release that might waive your diminished value rights. Remember Nevada’s three-year statute of limitations for property damage claims, so don’t wait too long to act.
Drop a comment with your car’s make, model, and year to get a sense of whether diminished value might matter for your situation. Like and subscribe if this guidance helped you understand your rights after an accident.
