How Much Can a Car Accident Devalue Your Vehicle?
July 18, 2022 | Sagi Shaked
Your car’s market value will automatically decrease after an accident, even after repairs are completed. Many consumers won’t pay high prices or even think about buying a car with a history of accidents. A record of the accident is often added to the vehicle’s history report after a collision.
Customers may look up vehicle history reports using online services, so if your car was damaged in an accident, it’s crucial to ensure that you receive fair compensation that covers your vehicle’s depreciation.
Factors that Can Depreciate the Value of Your Car
After an accident, your car’s value might decrease due to several circumstances. Some of the biggest reasons for depreciation in the value of your vehicle are discussed below.
The Age of Your Car
Your automobile is more vulnerable to damage following an accident the older it is. When an older model automobile is involved in an accident, its value drops even further.
Your Car’s History of Accidents
When a car is in an accident, its value plummets dramatically. An insurance company may assert that an automobile is worthless if it is involved in several accidents, even if the driver is not at fault.
The Extent of the Damage
A significant collision may result in extensive damage. An automobile damaged in an accident loses value, even with a superb technician working on it. However, minor damage, like a broken bulb, may be quickly rectified without suffering too much depreciation.
When assessing the worth of your automobile, insurance providers could also consider factors like the model year and mileage.
Certified experts must service a damaged car. When dishonest technicians use illegal auto components to save money, many customers are in a worse predicament.
Pursuing Compensation for Motor Vehicle Repairs
In Florida, you are entitled to compensation for any repairs that are reasonably required due to your accident. If another motorist was at fault for your collision, you shouldn’t be required to pay for car repairs out of your own pocket.
To fulfill their legal obligation, referred to in the legal field as “make you whole again,” the at-fault party and their property damage liability insurance carrier must pay for the costs of repairing your automobile and getting it back on the road.
You have the right to pursue financial compensation for a suitable replacement if the collision rendered your car a total loss.
Diminution of Value
You may also have the right to seek financial compensation for your car’s depreciation in addition to the cost of vehicle repair and maintenance. This is sometimes referred to as a claim for diminished value. In essence, you are entitled to money for lost value that will never entirely be made up for through repairs.
Diminished value describes the decline in market value that your automobile experiences as a result of an accident. Accidental damage may sometimes have a substantial impact on a vehicle’s value.
Even if you get your automobile fixed and take all of the necessary steps to restore it, the value of your car may still decrease due to the collision.
In Florida, the source of reimbursement for lost value is the insurance provider of the negligent motorist. You generally won’t be able to file a claim for lost value against your liability coverage provider if it is determined that you were at fault for the collision.
Both before the accident and after the repairs have been made, you will need an accurate evaluation of the car’s value. An expert appraiser employs a range of measures, including an examination of the accident damage, a review of the local car market, and an in-depth understanding of how the vehicle’s damage history influences its depreciation, to assess the amount of value that a car has lost.
Contact a Car Accident Attorney in Miami, FL for Help Recovering Compensation for Vehicle Repairs
If you’re planning to pursue a claim against an at-fault driver for property damage to your vehicle, reach out to an attorney for help. Most personal injury lawyers offer a free consultation to discuss your claim and advise you of your legal rights.