Your Car’s Value Could Go Way Down After an Accident

In a car accident, even one that doesn’t involve another negligent driver, your property damage insurance will pay for the damage to your vehicle, or replace it, depending on the extent of the damage to the car.

And while a repair of your vehicle, at no cost to you (other than what you’ve paid for the insurance itself) sounds like a great deal, there is one element of loss of damage that you may not have considered: The diminution in value of your vehicle.

Trading in a Car That’s Been in an Accident

Have you ever tried to trade in a vehicle that has been in an accident – even one that had a relatively minor repair or small damage?

If so, you’ve experienced the very significant reduction in trade in value that your car is worth—even if the damage was minor or cosmetic, and even if it was fully repaired. And because insurance repair records are easily accessible by almost every car dealership, there’s no hiding your vehicle’s prior accident history.

Diminution in Value of a Vehicle in Accident Cases

In many car accident cases, victims fix their car with their property damage insurance, and then go on to claim damages for injuries, disability, pain and suffering and all of the other things that victims in a car accident can receive.

But they forget about the diminution in value of their vehicle. They often don’t think about it until months or years later, when they go to trade that vehicle in, and find the trade in value to be markedly below market value because of having been in an accident.

Because the value of a car can diminish up to 50% after an accident, including a claim for diminution in value of the vehicle in an accident can significantly increase the value of a personal injury claim after an accident.

Your property damage insurance does not pay for this loss—that insurance only pays to repair or replace the vehicle. But you can include the diminution in value of your car in your claim against the other, negligent driver in the case.

How Much Diminution?

Usually lay people aren’t qualified to appraise a vehicle that’s been in an accident. But you can take your car into CarMax, or to any dealership, and have them give you a trade in value, and then compare that (reduced) trade in value, to what online appraisal websites like Kelly Blue Book or Edmunds, value the car at.

The difference between the online quoted value, and the value given to you by dealers or Carmax or similar companies, can tell you the level and extent of the diminished value of the vehicle.

Act Quickly

But because cars always, naturally lower in value as time goes on, this kind of comparison must be done as quickly after the accident as possible. Otherwise, as time goes on, it may be difficult to tell what part of the reduction in value is caused by the accident, as opposed to being caused by the simple passage of time, and continued use of the car.

If you[ve been in an accident, get the compensation you deserve, for all of your losses and injuries. Schedule a consultation with our Tampa personal injury lawyers at Barbas, Nunez, Sanders, Butler & Hovsepian today.

Source:

bankrate.com/insurance/car/diminished-value-claim/