accident devalue my car

Will An Accident Devalue My Car?

Jeziel Granados

Jeziel Granados

Total Posts: 62

Published Date: August 13, 2022

Jeziel Granados is the Content Manager at Champion Cash Title Loans, responsible for developing and distributing engaging content across various platforms. He strategizes content marketing to align with the company's...

How Much Does an Accident Devalue a Car?

Find out if an accident devalues my car.

It’s a nightmare for every person to see their car meet an accident. Moreover, such kind of situation is not a pleasant one. As it not only reduces the value of the car but can cause severe injuries to the person driving and sitting in the car.

The value of a car depends on certain factors such as proper maintenance, insurance coverage, complete documentation, and even more. Besides, the resale value of the car gets lower when the car met an accident.

The value of the car after an accident diminishes. Adversely and won’t ever get to the perfect reselling price, no matter how hard you try.

What Happens to Your Car’s Value after an Accident?

When a car met with an accident the value is reduced depending on how big or small the accident was. If your car’s bumper got damaged then it won’t impact the value. If the car got totaled then you can’t expect a high selling price.

You must know the details about the insurance coverage. How much damage your insurance company will cover to assist in overcoming the financial burden. In addition, insurance may help in reducing the repair expenses but won’t help in increasing the reselling value.

This is so, as some of the accident details get listed with the service shops.

Moreover, if the buyer checks the record of the car you are selling then you can expect a lower value than the selling price you have mentioned.

The dealers working in the selling and purchasing of cars have immense knowledge and can easily point out whether the car has met an accident previously or not. Once they find it then they will reduce the price and won’t consider it a profitable asset.

Besides, they can pay a good price for the same vehicle that never met an accident sold by another buyer.

Recommended reading: Increase The Resale Value Of Your Car

Does the Diminished value claim help?

Accidents do not happen without prior notification and they can happen to even to the best drivers out there. Moreover, the repair costs are not easy to manage if the accident was adverse.

You cannot get the benefits with the diminished value of the vehicle. In addition, if you file the diminished value claim with the insurance firm and send it to the other’s insurer mentioning that they were at fault then you may get some sort of assistance.

Understand State Insurance Laws

Certain states are allowing you to file for insurance claim with the person’s insurance firm who was at fault. Moreover, you must have sufficient proof proving that you were driving in the right manner.

Even if the person does not have the insurance, you can still claim the benefit with your insurance firm if you got motorist uninsured damage coverage.

Review Your Auto Insurance Policy

Accidents are not only heavy for the pockets but can cause mental and emotional damage. Thus, it becomes crucial to know about the insurance you have and the coverage it covers. Talk with your agent and settle the loopholes if there are any with your insurance.

Moreover, reviewing the auto insurance policy may require a few minutes from your busy schedule but it will help you later and that’s for sure.

What are the ways to file for a diminished value claim?

The suggestion before making a claim is to get the vehicle appraised professionally to know about the current value and documentation. For instance, if your car was valued at $20,000 before the accident and lowered to $15,000 after the accident, this states that the $5,000 value got reduced.

Visit the at-fault insurance firm and file for the diminished value claim.

Moreover, you need to submit the required details alongside the appraisal proof to complete the process. You must get the vehicle valued with the online car valuation tool mentioning complete details regarding the vehicle’s history.

If the insurer agrees to offer the claim it does not mean you will get the claim you wished for. They may use the industry standard and calculate the claim on that basis resulting in fewer claims than you were thinking of. Moreover, try to get the best deal because it’s better to get something rather than nothing. 

Recommended reading: Financing a Car, the Benefits You Obtain

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