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How to Estimate a Car’s Value After an Accident

After accidents, the value of cars naturally decreases, even if repairs are thoroughly done.
Lawyer for Car Accidents

Car accidents happen all the time. The aftermaths people experience are certainly hectic. There are medical expenses, wage losses, insurance costs, and vehicle repairs. After accidents, the value of cars naturally decreases, even if repairs are thoroughly done. So if you want to sell your car in the future, potential buyers may consider a lower price given the occurrence of a past accident. 

The diminished value of a car refers to the difference in its value before and after an automobile crash. This is why learning how the value of a car is estimated after an accident is important. It is also beneficial to be aware of the factors influencing such a value.

Knowing the Types of Diminished Value

As established, the value of a car significantly decreases after being in an accident. This is what diminished value focuses on— the post-accident condition even if repairs are done because the damage has already been done to the property. There are typically three types of diminished value everyone should know.

  • Immediate Diminished Value

This type is defined as the difference in the value of trade-in or resale of the car prior to the time of the accident to after the accident as soon as repairs have been conducted.

  • Inherent Diminished Value

The inherent diminished value is concerned with the car after it has received full repair and is restored to its original condition. Bear in mind that the car is now technically not considered new even if all the repairs treated the faulty issues.

  • Repair Related Diminished Value
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This type is concerned with the value lost due to improper mechanical or collision repairs. So, if you have issues after the car repairs, this will fall under the repair-related diminished value. This value is typically added to the inherent diminished value as an accident took place initially.

Filing a Claim

After car accidents, it is evident that the main concern will be the safety of everyone involved. Between rushing to the hospital and speaking to the cops, the process can include many hectic details. As people file for personal injury cases to amount for the medical expenses and wages lost, they tend to forget how valuable their property is. This is why it is smart to immediately file for a diminished car accident claim that will guarantee you proper compensation for the loss you incurred. So, if you want to sell your car, later on, this claim will help you with the financial aspect.

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Learning the Method of Calculation

When deciding to get an accurate calculation of the diminished value of a car, you go to insurance companies. Understanding how their approach works is important to know what to expect later on. Insurance companies typically use a method called 17c diminished formula to identify the new value of a vehicle after an accident. In simple terms, this method takes into account several factors such as the original value of the car, base loss of value in the accident, damage multiplier, and mileage multiplier. Eventually, by doing thorough checks on such factors, a final result is reached and you will get an in-depth outlook on the costs.

You can also use online websites to assist you while providing the data of the pre-accident condition of your car. This step can be done first to know the value of your car in the market. A third party will then do a physical inspection of your car. This paves the way for insurance companies to use the formula.

Negotiating the Car Value

This is an important step to take as insurance companies do not usually make it easy for people when it comes to money. Normally, auto insurance is handy in accidents as it will compensate for your car’s repairs after accidents. To specify the payout, the insurance company sets a value on the car, assesses the repair costs, and gives a check for the owed amount. With insurance companies, the process is different. 

This is why you should adopt a smart strategy when negotiating. Be equipped with comprehensive knowledge over your car’s value by asking a mechanic or doing online research. You can make the process amicable without having to file a lawsuit if you wish.

The procedures taken after a car accident are certainly time-consuming and hectic. There are many aspects to consider when dealing with this issue, such as medical attention, insurance, wages, pain and suffering, and more. One key aspect that can be often overlooked is the value of the car after the crash. With the guide provided here, you are now awa

re of the factors that influence the car value estimation after accidents.

Britta Hedlund