Georgia 17C – Mabry vs. State Farm

The Mabry vs. State Farm lawsuit marked a turning point in how diminished value claims are handled in Georgia. In this class action case, State Farm was sued for breach of contract after failing to properly compensate policyholders for the diminished value of their vehicles in first-party claims. The result was the creation of the controversial Georgia 17C formula, also known as the Mabry v. State Farm formula.

Many insurers present the 17C formula as state law or as being approved by the Georgia Insurance Commissioner’s Office—but that is not true. In fact, the Commissioner’s Office has publicly clarified that it has not endorsed, created, or promoted any specific formula for determining diminished value.

Since the ruling, insurance companies have developed similar formulas under different names to distance themselves from the 17C label, but the outcome remains the same: an arbitrary and restrictive valuation method.

The 17C formula imposes an immediate 10% cap on diminished value. For example, if your car is worth $30,000, the maximum payout under this formula is limited to $3,000—even if your damage is far greater. Additional “damage” and “mileage” modifiers then further reduce the value, often resulting in a minimal or even zero-dollar offer.

If you’ve received a Georgia 17C-based offer, don’t cash or deposit the check. Contact Dempsey Appraisal immediately to speak with a consultant who can guide you through your options.