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State law · GA
Yes. Georgia courts allow an owner to recover a repaired vehicle's lost value from the at-fault driver, and under State Farm v. Mabry (2001) insurers whose auto policies promise to pay for 'loss' must assess and pay diminished value on their own policyholders' physical-damage claims. The amount is still disputed case by case; no formula, including the insurer-favored '17(c)' method, has been endorsed by the state.
Claim against the at-fault driver
Allowed by case law
Claim against your own insurer
Allowed by case law
Time limit to sue for property damage
4 years
Insurance regulator
Georgia Office of the Commissioner of Insurance and Safety Fire
Reviewed by Monica Fisher, Owner, Licensed Auto Appraiser and Court Expert Witness — appraisal perspective, not legal advice
Last reviewed
Georgia law
Third-party claim
Allowed by case law
Georgia courts measure vehicle damage as reasonable repair costs plus loss of use plus any permanent impairment in value, capped at the vehicle's pre-accident market value (Myers v. Thornton). The owner must prove the lost value, usually with appraisal or other evidence. A claimant 50% or more at fault recovers nothing, and a partly-at-fault claimant's award is reduced.
Authority: Myers v. Thornton, 224 Ga. App. 326, 480 S.E.2d 334 (1997); O.C.G.A. § 51-12-33(g); O.C.G.A. § 33-4-7
First-party claim
Allowed by case law
Mabry held that State Farm's policy, which promised to pay for 'loss' to the car, covers diminution in value even after proper repairs, and that the insurer must assess that element whenever a policyholder makes a general physical-damage claim. The holding turns on policy wording, so a policy worded differently may be treated differently. Insurers may use the 17(c) formula; a court held reasonable reliance on it can defeat a bad-faith penalty claim.
Authority: State Farm Mutual Automobile Insurance Co. v. Mabry, 274 Ga. 498, 556 S.E.2d 114 (2001); Amica Mutual Insurance Co. v. Sanders, 335 Ga. App. 245, 779 S.E.2d 459 (2015); Royal Capital Development, LLC v. Maryland Casualty Co., 659 F.3d 1050 (11th Cir. 2011) (certifying question)
Case law
Supreme Court of Georgia · 2001
274 Ga. 498, 556 S.E.2d 114 (2001)
Physical damage can reduce a vehicle's value even when repairs restore appearance and function; State Farm's policy obligates it to pay that loss of value and to assess diminution in value along with physical damage whenever a policyholder makes a general claim of loss. The injunction requiring State Farm to do so was affirmed.
Court of Appeals of Georgia · 2015
335 Ga. App. 245, 779 S.E.2d 459 (2015)
An insurer's reasonable use of the 17(c) formula to value a first-party diminished-value claim gave it reasonable grounds to contest the claim, so it was not liable for the statutory bad-faith penalty as a matter of law. The opinion recounts that 17(c) came from the Walker v. American National class settlement and describes the 2001 and 2008 Insurance Commissioner directives.
Court of Appeals of Georgia · 1997
224 Ga. App. 326, 480 S.E.2d 334 (1997)
Vehicle damage may be proved by the reasonable cost of necessary repairs, plus loss of use, plus the value of any permanent impairment in the vehicle's value, with total recovery capped at the vehicle's pre-accident market value; a diminution-in-value award after repairs was upheld.
U.S. Court of Appeals for the Eleventh Circuit · 2011
659 F.3d 1050 (11th Cir. 2011) (certifying question)
Summarizes Mabry: a Georgia policy promising to 'pay for loss to' a vehicle covers repair costs and the accident-caused diminution in value, even where the insurer has an option to repair; certified to the Georgia Supreme Court whether the rule extends to building policies.
O.C.G.A. § 9-3-31: Injuries to personalty
Actions for injuries to personal property must be brought within four years after the right of action accrues.
O.C.G.A. § 33-4-7: Motor vehicle liability insurer's duty to adjust property damage claims
A liability insurer must adjust property-damage claims against its insured fairly and promptly and try in good faith to settle when liability is reasonably clear; it can face a penalty and attorney's fees for bad-faith refusal after a written demand. The statute does not mention diminished value.
O.C.G.A. § 51-12-33(g): Comparative fault bar
A plaintiff 50 percent or more responsible for the injury or damages claimed recovers nothing; lesser fault reduces the award.
Researched September 30, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in GA
We serve Georgia from your repair order, photos and records, the same way we serve every state. A typical diminished-value appraisal is $250–$350, typically 24–48 hours after all required information is received.
Other states
The claim review is free: we look at your situation and tell you whether an appraisal is likely to help. The appraisal itself is a paid report. We help from start to finish, including a custom demand letter, and our support staff is a phone call away throughout the process.
