Mabry v. State Farm · 2001

The 17c formula is broken — and your settlement offer reflects it.

State Farm and most insurance carriers rely on a 23-year-old class-action shortcut to lowball diminished value claims by thousands of dollars. Here's what 17c actually is, why it doesn't apply to you, and what to do about it.

"The Georgia Insurance Department does NOT endorse 17c."

Directive from the Georgia Insurance Commissioner
Why it's wrong

Five things 17c gets wrong

The formula was a 2001 administrative compromise for a single class action. Here's why it shouldn't determine your settlement.

01

The 10% cap is arbitrary

17c assumes no vehicle — Kia or Rolls-Royce — can lose more than 10% of value, with no data to support it.

02

Mileage is penalized twice

NADA already adjusts for mileage. Then 17c multiplies again, sometimes cutting your loss to less than half.

03

It caps at 100,000 miles

According to 17c, a vehicle with 101,000 miles can no longer lose value. Tell that to the used-car market.

04

It ignores most damage types

Flood, fire, bumper damage, airbag deployment, and CARFAX history aren't factored in at all.

05

NADA doesn't recognize DV

NADA itself states there's no data to support a precise value loss for damage. The source data isn't there.

The result?

A typical 17c offer is $500–$1,200. A real appraisal often shows $3,000–$5,000+ in actual loss.

See for yourself

What's your 17c offer worth?

Run the same formula your insurance carrier uses — then see why it's almost certainly understating your loss.

Open the 17c Calculator

Don't accept the 17c number.

Request your free 17c rebuttal letter — a written breakdown you can send to the insurance company to challenge their valuation.

Request the Rebuttal Letter →