How Much Does the Value of a Car Decline Following an Accident?
How much a car’s value depreciates after an accident depends on many factors, including its age and the severity of the damage. Your car’s value could depreciate significantly, depending on the details of your crash.
Your car’s diminished resale value could just be one part of your car accident claim. If you suffered injuries and other losses in a collision, our car accident lawyer can navigate the financial recovery process. Connect with us by calling (954) 633-8270.
A Car’s Depreciation Depends on These Factors After an Accident
A car depreciates in value from the minute you drive it off the lot. U.S. News & World Report notes that within the first five years, most cars lose 49.1 percent of their value. Some cars depreciate even faster in value, especially luxury vehicles.
After an accident, depreciation will typically depend on these factors:
The Car’s Age
Generally, the older a car, the less it’s worth. Consider the 2015 Nissan Frontier, which originally sold for $35,260 when new. However, within five years, U.S. News & World Report noted that these cars lost 43.5 percent of their value within the first five years. Even in good condition, a car typically loses its value with age.
Demand for the Car
Some cars are more in demand than others, decreasing their deprecation value after an accident. Mazdas, Hondas, and Subarus are constantly in high demand, meaning people are willing to pay more for them—even if they were in collisions.
The Accident’s Severity
A minor fender-bender likely won’t decrease a car’s resale value by much. Matters change if a car sustains serious structural damage. Even if the car gets repaired, potential buyers might think twice about purchasing it.
The Car’s Mileage
A car’s deprecated value is measured in years, not miles. An old car with a lot of miles is generally valued less than a newer car with fewer miles after an accident.
The Car’s Necessary Repairs
Sometimes, after a collision, an owner may want to sell the car “as is.” This way, they can avoid spending money on repairs. Yet, as mentioned, buyers think twice about purchasing a car with damage, no matter how minimal. This may prompt them to make an offer below the asking price––or walk away altogether.
Your Car’s Depreciated Value Could Just Be One of Your Losses
In addition to your car’s diminished resale value, you could have other losses after a collision. Recoverable damages through a claim or lawsuit include:
You could have suffered serious injuries in the collision. If so, a settlement could offer reimbursement for surgeries, medications, in-patient care, and appointments.
Lost Income and Other Revenue Sources
Compensation through a car accident claim could yield recovery for lost tips, bonuses, benefits, and commissions. You could also pursue the cost of reduced future earning capacity if your collision caused life-altering injuries.
Property Damage Costs
Rather than selling your car after a collision, you may opt to get it replaced or repaired. Your insurance could offer coverage, if so.
Out-of-Pocket Injury-Related Expenses
You may have spent money out of pocket in the aftermath of the collision. You could recover compensation for expenses such as:
- Temporary transportation arrangements
- Childcare services
- Modifications to your home to make it disability-accessible
We can verify these losses using documentation, such as receipts.
Medical bills and lost income are two types of economic damages, meaning they come with verifiable dollar values. Non-economic damages are a different story. They comprise losses that reflect your physical and emotional hardships. Examples include:
- Pain and suffering
- Loss of consortium
You Won’t Have Forever To Seek Compensation Through a Lawsuit
Ideally, after your collision, you file a claim with your insurance provider and recoup damages. Yet, your case may not be that easy. You may need to file a lawsuit to recover the full cost of your injury-related expenses. In that instance, you must comply with your state’s statute of limitations. Florida Statutes § 95.11(3)(a) explains Florida’s car accident statute of limitations.
This law gives you a four-year period to file your injury lawsuit. Acting within this deadline allows you to seek compensation for your accident-related losses.
Why Partner With a Car Accident Lawyer?
You don’t have to negotiate with the insurance company alone after a car accident. You have the opportunity to entrust your case to an Fort Myres personal injury lawyer. Our team can file your claim, gather supporting evidence, and negotiate a fair settlement offer. When evaluating your case’s value, we can determine how much the accident has caused your car’s worth to decrease. Then, we can factor that figure into your case’s overall value.
Call the Law Offices of Wolf & Pravato To Explore Your Options After a Car Collision
Did you suffer injuries in a collision? If so, you may wonder if you could include the cost of your car’s depreciation in your claim’s value. Our team can answer that question after we evaluate your case and learn your story. Contact us to discuss your case with the Law Offices of Wolf & Pravato, call (954) 633-8270.