How the 17c formula works
Start with book value
The pre-loss value, usually from a pricing guide such as NADA.
Apply the 10% cap
Base loss is set at 10% of that value — a cap with no clear market basis.
Damage multiplier
Base loss is multiplied by 0 to 1.00 depending on how severe the adjuster rates the damage.
Mileage multiplier
The result is reduced again by mileage — vehicles over 100,000 miles get zero.
A worked example
| Pre-loss value | $40,000 |
| 10% cap (base loss) | $4,000 |
| Damage multiplier — moderate (0.50) | $2,000 |
| Mileage multiplier — 45,000 mi (0.60) | $1,200 |
A $40,000 vehicle with moderate damage ends up with a $1,200 offer — 3% of its value. A market-based appraisal of the same vehicle frequently shows a substantially larger loss.
Why 17c undervalues claims
- The 10% cap is arbitrary — real-market losses on late-model and specialty vehicles often run far higher.
- It never looks at actual sales of accident-history vehicles.
- High-mileage vehicles are zeroed out regardless of condition or desirability.
- Classic cars, resto-mods, and collector vehicles aren't valued well by book guides to begin with.
- Damage severity is rated by the carrier's own adjuster.
The alternative: a market-based appraisal
Texas measures property damage as the difference in market value before and after the loss. An independent appraisal answers that question directly — using comparable sales, documented condition, and the market's response to accident history. Michael "Woody" Wooding has prepared diminished value appraisals for 16 years and testifies as an automobile expert witness in Harris County. Read more in the Texas diminished value guide or the Texas total loss guide.
Received a 17c-based offer?
Get an independent look at what the vehicle actually lost.
Request a consultationGeneral information only, not legal advice. Multipliers shown are typical published 17c values; individual carriers may vary.