High leverage points can cause multicollinearity in fixed effect panel data models. These points, called high leverage collinearity-enhancing observations, can lead to inaccurate results when using the usual estimation method. A new diagnostic method called RVIF (WGM-FIMGT) has been developed to accurately detect multicollinearity in the presence of these high leverage points. This method outperforms the traditional diagnostic method, CVIF, by correctly identifying the absence of multicollinearity in the data with high leverage collinearity-enhancing observations.