[gt-link lang="es" label="Se Habla Español" widget_look="lang_names"]
[gt-link lang="en" label="English" widget_look="lang_names"]
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Founding Partner, Kigan Martineau who has years of legal experience as a personal injury attorney. Our last modified date shows when this page was last reviewed.
Car accidents can do more than just cause physical damage; even after repairs, your vehicle may not be worth as much as it was before. This loss in value is known as depreciation, and it happens fast after a crash. Many people are surprised by how much a car can lose in value, even if it looks brand new after repairs.
BAM Personal Injury Lawyers helps drivers understand the financial impact of an accident. If you weren’t at fault, you may be able to recover compensation for your losses, and that includes more than repair costs. It can also cover the difference between what your car was worth before the crash and what it’s worth now.
Diminished value is the amount your car loses after it’s been in an accident, even if it’s been fully repaired. Buyers usually prefer cars with no crash history. If they see past damage, they may offer less money or not buy at all.
This drop in value is a type of depreciation. It occurs because your car is no longer in its original condition. Even small repairs can affect resale value. That’s why many people are shocked by how much their car can lose after just one accident.
Most consumers won’t pay top prices for a car that’s been in a crash. They worry about safety, future problems, and unseen damage. Even with proper repairs, a car with an accident record is harder to sell.
Buyers often search the vehicle’s history before making an offer. If an accident is listed, they may walk away or lower their offer. That’s because they see it as a risk. Some fear the model may not perform the same or that repaired parts won’t last.
This is why diminished value matters. Even if your car looks fine, the accident history alone can make it worth less.
Looking for an Idaho Personal Injury Lawyer? Contact BAM Personal Injury Lawyers
Not all depreciation is the same. After a crash, your car can lose value in different ways depending on what occurred and how it was repaired.
This happens right after the accident but before repairs are made. At this stage, the car's value drops due to visible damage. If you tried to sell the vehicle immediately after the crash, you’d likely get much less.
Even if no one was injured, the damage itself causes this loss. It reflects what a buyer would be willing to pay before the car is fixed. Insurance companies rarely compensate for this type of loss, but it’s the first drop in value.
This is the most common type of value loss after an accident. It refers to the drop in value that stays even after the car is fully repaired. Most buyers will not pay the same for a car with a crash on record.
Even perfect repairs cannot erase the vehicle’s history. The fact that it was involved in a traffic accident still lowers trust in its quality. This kind of depreciation is usually what a car owner can claim against the at-fault driver’s insurance.
Sometimes, repairs don’t restore the car to its original condition. Maybe low-quality parts were used, or the paint job doesn’t match. If the repair lowers performance, safety, or looks, the car will lose even more value.
This loss can be blamed on the shop or poor choices made during the repair. Using non-OEM parts is a common cause. It’s also harder to detect unless the buyer knows what to look for. This is why quality repairs are important after any accident.
The amount a car loses after a crash depends on several things. Even one accident can make a big difference in what your car is worth later.
Several details determine how much value a car loses. These include:
Insurance companies use these factors to calculate how much to pay if they accept the claim. A good attorney will gather strong evidence to prove how much your car lost in value.
In most cases, cars lose 10% to 25% of their value after a crash. For newer or more expensive vehicles, that can mean thousands of dollars. For example, a $30,000 car may drop $6,000 in value, even if it looks brand new.
Each case is different. Some models lose more based on how they perform after repairs. Others may lose less if the damage is minor. But in almost every case, buyers will pay less once they know the car has been in an accident.
You may be able to recover money for lost value, but it depends on your policy and who was at fault. Not every insurance company will agree to pay for it.
To get compensated, you need to file a diminished value claim. If another driver caused the accident, you can often claim against their insurance company. In some states, you may also file under your own policy.
Start by contacting the insurance company and telling them you want to file this type of claim. Be prepared to show the depreciation that occurred. The more proof you have, the better your chances of getting paid.
Working with an attorney helps make sure the claim is filed the right way and on time.
To win a diminished value claim, you must prove your car is worth less than before. This means showing:
You’ll need repair records, vehicle history reports, and a professional appraisal. The right evidence is essential. Without it, your claim may be denied or underpaid.
Insurance companies often reject these claims. They may say the damage was too minor. Or they might argue the depreciation isn’t large enough. Some policies don’t cover it at all.
If your claim is denied, you still have options. A car accident attorney can review the denial and challenge it. They’ll look at your evidence and fight for fair compensation. Many claims are denied simply because they are not supported by sufficient evidence.
In many cases, a car can lose 10% to 25% of its value after a crash. The actual amount depends on the severity of the damage, the model, and the quality of the repair. Even with perfect repairs, depreciation occurs just because the car now has an accident history.
It depends on your policy and the state you live in. Some insurance companies don’t cover diminished value under your policy. But if the accident wasn’t your fault, you may be able to file a lawsuit against the other driver’s insurance.
You’ll need proof that your car lost value after the accident. This includes before-and-after appraisals, repair records, and vehicle history reports. Having an attorney gather and organize this evidence can help increase your chances of success.
No. You usually have to ask and provide proof. Many insurers deny these claims unless strong evidence is presented. It’s important to understand your rights and speak with an attorney if your claim is denied.
While not required, hiring an attorney can make a big difference. An attorney can help determine the true amount of loss, handle communication with the insurance company, and fight for fair compensation if your claim is challenged or denied.
If you’ve been in a car accident and your vehicle lost value, you don’t have to accept that loss alone. Many drivers don’t realize they may be able to recover compensation for depreciation, not just repairs.
BAM Personal Injury Lawyers helps clients understand their rights after a crash. We’ll review your case, calculate your losses, and deal with the insurance company on your behalf. Our goal is to help you recover the difference your car lost in value.
We know what evidence is needed and how to present it clearly. Whether you’re filing a diminished value claim or appealing a denied one, we’re here to help. Call BAM Personal Injury Lawyers today for a free consultation. You only pay if we win your case. Let us fight for the full value your vehicle deserves.
"*" indicates required fields
"*" indicates required fields
