A car accident can be a traumatic experience, and it can also be very costly. Not only do you have to deal with the cost of repairs, but you also have to deal with the decrease in the value of your car.
Depending on the severity of the accident, your car could lose between 10% and 25% of its value before the accident.
In some cases, the loss in value may be more than the cost of repairs. This is especially true if the accident was your fault. If you are found to be at fault in an accident, your car insurance rates will likely increase. The other driver may also sue you for damages.
All of this can add up to a very costly experience. If you have been in an accident, it is vital to seek legal help to ensure that you are fairly compensated, and your financial obligations will be minimized.
Understanding Car Depreciation
The most important factor that dictates car depreciation is its make and model. Some cars hold their value better than others, which is often due to the manufacturer’s reputation. For example, Subaru and Toyota are trusted brands and their vehicles retain great value even after five years.
The age and condition of the vehicle also dictate how much it is worth over time. A car that is a few years old and in good condition will typically hold its value better than one that is much older and looks its age.
Of course, car depreciation is not always easy to predict, and it can vary significantly from one car to the next. But generally, the vehicle’s age, model type, and condition are the factors that matter most when considering its value after an accident has occurred.
Car Insurance and Liability
Insurance and liability can also determine the value of a car after an accident. Vehicle insurance is designed to protect you financially and should cover the cost of repairs to your car and the medical expenses of any injured passengers.
The amount of vehicle insurance and liability coverage you need depends on the value of your car. In general, the higher vehicle’s sticker price, the more coverage is required.
Liability insurance is meant to cover the damage you may cause to another person or their property in an accident. The value of your vehicle also affects your liability limit—the higher the value of your car, the higher your liability limit.
Ask for Legal Help
After an accident, it is vital to get legal help as soon as possible. A lawyer will help you get the insurance settlement you deserve. They will also help you figure out how much your car has devalued.
An accident, no matter how small or severe, can significantly lower the value of a car. Knowing the factors that affect the original value and the cost of your insurance policies can help you estimate how much your vehicle will depreciate after an accident. Use our accident settlement calculator to see what your case could be worth.
