How Does a Car Crash Affect the Value of a Vehicle?

Following an auto accident, one or both vehicles involved has typically been altered and needs repairs. Even after the repairs have been performed, has your car’s value decreased?

Diminished Value.

Diminished value is the difference in a vehicle’s market value after it has been involved in a car crash and subsequently repaired. Most people are not willing to pay full price for a vehicle that has been in an accident, especially if the accident was relatively severe. But, most individuals do not know that insurance companies may pay for both vehicle repairs and for the diminished value difference.

Even if all of the repairs, body work, and paint have been completed flawlessy, the vehicle may still lose some of its pre-crash value. There are companies that specialize in determining diminished values for the car owners, typically at the request of the insurance company. These companies would be contacted if your insurance company is notified that you expect to collect diminished value after a crash. An unbiased third party appraiser would then establish the loss in value and record a diminished  value report.

Several insurance companies use a formula called 17C to determine diminished value, a value that may unfairly and inaccurately calculate current market value.

Car insurance companies don’t want to you to know about diminished value.

Car insurance companies will have every reason to deny that your vehicle has experienced any loss in value, or diminished value. In some claims there could be very minimal value difference, while in others the difference could be huge. When evaluating diminished value, here are some things to be considered:

  • The quality of repair: Following your repairs, is it obvious that your vehicle was involved in an accident? Check to see if it has paint lines, paint color shade difference, uneven body panels, etc.
  • The parts used: Aftermarket parts are available in both high and low quality. If the parts used on the vehicle were of low quality, they could affect durability, appearance, and value.
  • Factory warranty: Is the vehicle still under factory warranty? If so, find out if the fact that the car was in a crash will have any affect the warranty coverage.

An Example of Diminished Value

A brand new vehicle is worth $30,000. It is rear ended, and the damage is estimated at $10,000.  Your own insurance companies pays for the repairs.

The body shop did great work, and the car looks brand new again. So, the newly repaired car is still worth $30,000 then, right? No, not so quick. First off, CARFAX, which is used by dealers and potential buyers, will have a complete car history report included information about the accident. Therefore, many car dealers cannot market this car as a “certified” used vehicle anymore, which greatly reduces its value. Even buyers that access the CARFAX report are more likely to look elsewhere, unless they can buy the repaired vehicle at a reduced price. If the new buyer is willing to buy the car for $22,000 because it had been damaged and repaired.  Then, the diminished value would total at $8,000.

So, the conclusion of this example is to check both insurance policies closely after an accident. Weigh in both the age of the vehicle and severity of the crash when calculated diminished value, and consider having an expert conduct a value report after an accident.

Experienced Missouri Car Crash Lawyer

If you have sustained injuries in an accident that was the fault of another driver, you may be entitled to compensation for your injuries and for the diminished value of your vehicle. A professional Missouri Injury Attorney can evaluate the diminished value of your vehicle, and include that in your settlement demand to the insurance company. Attempting to collect for all of your harms and losses from the insurance company on your own can be a nightmare, and chances are you will not get a fair reimbursement. With an experienced St. Louis injury attorney, licensed to practice in all of Missouri, on your side, you will be properly equipped to fight the insurance companies for fair compensation. Give us a call today for a free case consultation at 314.409.7060 or 855.40.CRASH.

Recent News

See What's Happening

  • 6 Ways to Lose a Dog Bite Insurance Claim
    Jun13

    6 Ways to Lose a Dog Bite Insurance Claim

    Insurance companies place unreasonable obstacles before injured victims. Let our dog bite lawyers move them. Dogs may be man’s best friend, but that doesn’t...
  • What is a Premises Liability Injury Case?
    May30

    What is a Premises Liability Injury Case?

    You may be able to win thousands of dollars in damages if you are injured on someone else’s property, such as slipping down a...
  • Rental Car Accident Claims & Insurance Tips
    May17

    Rental Car Accident Claims & Insurance Tips

    Millions of car accident injuries and 40,000 fatalities each year…and counting. Being in a car accident — or having a family member injured or...
  • When Should You Hire a Lawyer?
    May12

    When Should You Hire a Lawyer?

    Suffering a life-changing injury or losing a family member can be unfair and expensive. It’s also a good time to lawyer up. The St....
  • 100,000 Work Zone Accidents Per Year
    Apr30

    100,000 Work Zone Accidents Per Year

    Did you know there are more than 87,000 car accidents in construction zones every year? While the fatality rate is low, roadways under construction...
  • Motorcycle Fatalities Surge in 2018
    Apr19

    Motorcycle Fatalities Surge in 2018

    You are 29 times more likely to die in a motorcycle accident than a car wreck, totaling to about 5,000 fatalities per year. The...

Meet Christopher R. Dixon

Legal & Injury Representation St. Louis Deserves.

Results — that's what clients expect from Dixon Injury Firm. Chris brings years of personal injury law experience to the table. Based in St. Louis, his firm provides free consultations and contingency service to the high-caliber injury and liability legal arena. Tell us about your case and we'll show you how to win.

Recent Successes

  • Policy Limits Settlement

    Missouri Truck Accident

    $30,000.00 Settlement

    Missouri Car Crash With Minor Property Damage

  • $40,000 Settlement

    Missouri Low Impact Automobile Accident

    $40,000 Settlement

    Missouri Dog Bite

  • $45,000 Settlement

    Missouri Dog Bite

    $50,000 Settlement

    Missouri Auto Accident

  • $50,000 Settlement

    Missouri Car Accident Crash

    $65,000 Settlement

    Missouri Pedestrian Accident

Get The Representation You Need Today!

Reach out to Chris Dixon for personal injury, workers compensation, product liability, and other legal services for experienced, reliable counsel and representation in St. Louis.

Contact Us Today

Schedule a
Callback

 

Submit Your
Case Details

 
 

Have Questions?

We are available to chat live with you 24 / 7 if you have questions about your potential case.

Chat Live
No Thanks