Insurance Claim Glossary
Knowledge is power. Understand the technical terms insurance adjusters use to evaluate your claim.
17c Formula
A widely used (but often criticized) formula established by State Farm v. Mabry to calculate diminished value. It caps the loss at 10% of the vehicle's value and applies modifiers for mileage and damage severity.
Appraisal Clause
A provision found in most auto insurance policies that allows for a formal dispute resolution process when the insurer and the policyholder disagree on the amount of loss.
Inherent Diminished Value
The automatic loss in resale value a vehicle suffers simply because it now has an accident history on reports like Carfax, even if repairs were performed perfectly.
USPAP
The Uniform Standards of Professional Appraisal Practice. These are the ethical and performance standards for the appraisal profession in the United States.
Total Loss Threshold
The point at which an insurance company determines it is more cost-effective to pay the fair market value of a car rather than repair it (typically 70-80% of the value).