Georgia 17C Formula – Mabry vs State Farm – Why is Use of the 17c Formula Unfair?
Georgia 17C – Mabry vs State Farm
Mabry vs State Farm refers to a significant class action lawsuit settled against State Farm Automobile Insurance Company, which catalyzed the modern understanding of diminished value. In essence, the plaintiffs alleged a breach of contract by State Farm for inadequate compensation regarding diminished value on first-party claims. This legal battle led to the creation of the well-known Georgia 17C formula (also known as 17C or Mabry v State Farm formula). Despite claims by some insurance companies suggesting it as state law or endorsed by the Insurance Commissioner’s Office, this isn’t the case.
At the bottom of this page , you’ll find a PDF where the Insurance Commissioner’s Office explicitly states they have neither produced nor endorsed any formula for determining diminished value. Since the ruling, insurance companies have developed variations of the original formula, often with similar outcomes, in an effort to distance themselves from the controversial 17C.
It’s important to note that the 17C formula applies exclusively to claimants associated with the court case and does not extend to you. Georgia 17C and its variants typically impose a 10% cap on your loss of value claim, regardless of the extent of damages sustained. Additionally, they incorporate ‘damage’ and ‘mileage modifiers’ which essentially reduce your claim, often resulting in inadequate offers or even no compensation at all.
If you’ve received a Georgia 17C diminished value offer for your vehicle, we urge you to pause and contact us immediately. Refrain from cashing or depositing any checks received without consulting one of our consultants first.
