Does my car lose value after a collision?
One of the most significant impacts of a car accident is the loss of value of the vehicle involved. Even if the car is repaired to the highest standard, the fact that it has been in an accident can diminish its value. This reduction in value is known as diminished value, and it can be a frustrating consequence of an accident. In this blog, we will explore what diminished value is, how it is calculated, and what options you have if you have experienced diminished value after a car accident.
What is Diminished Value?
When a car is involved in an accident, the value of the car is likely to decrease, even if the repairs are completed to the highest standard. The reason for this is that the car’s history has changed. Potential buyers may perceive the vehicle as less safe and less reliable than it was before the accident. Therefore, even if the car has been repaired to the highest standard, it will still be worth less than it was before the accident.
Diminished value is the difference between the pre-accident value of a vehicle and its post-accident value. This is the amount of money that the car has lost in value due to the accident. The extent of the diminished value varies depending on the severity of the accident, the age and condition of the car prior to the accident, and the make and model of the car. In general, more expensive cars will experience a higher level of diminished value than cheaper models.
Calculating Diminished Value
Several factors can influence the level of diminished value a car experiences after an accident. These factors include the age and condition of the car before the accident, the make and model of the car, and the severity of the accident. There are several methods for calculating diminished value.
One of the most common methods for calculating diminished value is the 17c formula. This formula is used by many insurance companies to calculate the amount of diminished value a car has suffered. It takes into account the pre-accident value of the car, the severity of the accident, and the mileage of the car. Another method for calculating diminished value is to compare the value of a car before and after the accident. The difference between these two values is the amount of diminished value.
What Can You Do About Diminished Value?
If you have experienced diminished value after a car accident, you have several options available to you. One option is to file a claim with your insurance company. Some insurance policies include coverage for diminished value, although this is not always the case. If your policy does not include diminished value coverage, you may be able to negotiate with your insurance company to receive a payout for the diminished value of your vehicle.
Another option is to pursue legal action against the at-fault driver. If the other driver was responsible for the accident, you may be able to seek compensation for the diminished value of your vehicle as part of a personal injury lawsuit. This can be a more complex and time-consuming process, but it may be worth it if you believe you have a strong case.
It is also possible to minimize the risk of diminished value by choosing a high-quality repair shop. A reputable repair shop will ensure that the car is repaired to the highest standard, using genuine parts where possible. This can help to reduce the risk of diminished value and ensure that the car is as safe and reliable as possible.
In conclusion, diminished value is a reduction in the value of a vehicle that has been involved in an accident. This reduction in value can be due to a number of factors, including the severity of the accident, the age and condition of the car prior to the accident, and the make and model of the car. If you have experienced diminished value after a car accident, call our office and we can certainly assist you with the claim.