How Much Value Does a Car Lose After an Accident?Get a Free Consultation
Car accidents are one of the most common reasons for automobile depreciation, or a reduction in value. Even a minor car accident can cause enough property damage to decrease the value of a motor vehicle. Repairs are not enough to restore the full pre-crash value of a vehicle – buyers will pay less for a car that has been involved in a car accident, even if the car was fixed. Understanding vehicle depreciation can help you seek fair financial compensation after a car accident in Tampa.
Average Vehicle Depreciation After a Car Accident
A car accident will always result in vehicle depreciation. How much value a vehicle loses will depend on the circumstances. Minor car accidents or fender benders will reduce a vehicle’s value less than severe car accidents. On average, if a motor vehicle needs to go to a shop for repairs after a collision, it will lose as much as one-third (33 percent) of its value. The use of cheap after-market parts can depreciate the value of a vehicle further. Regardless of the quality of the parts, however, a vehicle will suffer inherent diminution: a loss in value due to a car accident.
How Is Vehicle Value Determined?
A motor vehicle is one of the most expensive purchases a person can make. Yet new cars lose value as soon as they’re driven off the lot. The value of a vehicle refers to its resale value, or how much the owner could potentially make by selling the car. The pre-crash value of a motor vehicle depends on many factors, including:
- The make and model of the vehicle
- Its color and features
- Any custom features you added
- The vehicle’s status as an antique
- The mileage of the vehicle
- Whether it had previous accidents
In addition, the value of a vehicle will depend on economic factors such as the availability of the vehicle and consumer demand. Vehicles are an item that typically decrease in value over time. They lose value the more they are driven, the more repairs they receive and the more accidents they are involved in.
Can You Recover the Lost Value of Your Vehicle From a Car Accident?
The type of economic loss suffered due to property damage from a car accident is known as diminished value. In a car accident insurance claim in Florida, the vehicle owner could receive payment for diminished value. If a vehicle sustains significant damage, it may become a total loss, or “totaled,” meaning the cost of repairs exceeds the value of the vehicle. In this case, the vehicle owner could receive a payment from an insurer for the full pre-crash value of the car.
The party responsible for paying for a car accident depends on the scenario. Florida is unique as a no-fault car insurance state. Under this rule, all drivers involved in a crash will seek compensation from their own insurance providers, regardless of fault. Drivers are required to carry personal injury protection (PIP) insurance to pay for their own injuries. Automotive repairs (and diminished value) will be paid for by the driver’s insurance company. However, the driver may have to pay a deductible.
If your vehicle lost value due to a car accident that was not your fault and you do not have enough insurance to pay for repairs, you may be able to seek financial compensation from the other driver. You could file a lawsuit against the driver that caused the car accident with assistance from a car accident attorney. An attorney can help you go up against an insurance company to seek the compensation that you deserve for a serious car accident. This includes a fair payout for vehicle depreciation.