You get into a car accident, have your vehicle repaired, and everything looks good again. So your car should be worth exactly what it was before the accident, right?
Unfortunately, that’s not always the case.
Even when a vehicle has been professionally repaired, an accident on its history can affect how much someone is willing to pay for it. That loss in value is often called diminished value.
What Does Diminished Value Mean?
Diminished value is the difference between what your vehicle was worth before an accident and what it is worth after the accident and repairs.
For example, imagine your car was worth $25,000 before a crash. After it is repaired, a dealership or potential buyer sees the accident on the vehicle history and is only willing to pay $21,000.
That $4,000 difference could represent diminished value.
Why Does a Car Lose Value After an Accident?
Think about shopping for two used cars. They are the same year, make, and model, have similar mileage, and appear to be in similar condition.
The only difference? One has been involved in a significant accident, while the other has never been wrecked.
Many buyers would choose the vehicle without the accident history—or expect to pay less for the one that has been damaged and repaired.
That’s why an accident can potentially lower your vehicle’s resale or trade-in value even when the repairs were done correctly.
How Is Diminished Value Calculated?
There isn’t necessarily one simple number that applies to every vehicle. Several factors may affect how much value a car loses after an accident, including:
- The vehicle’s age and mileage
- Its value before the accident
- The type and severity of the damage
- The quality of the repairs
- Whether there was structural damage
- The vehicle’s accident history
- Current market conditions
In some situations, documentation such as repair records, vehicle valuations, comparable vehicle prices, or a professional appraisal may help establish the loss in value.
Can You Make a Diminished Value Claim in Louisiana?
Depending on the circumstances of the accident and the available insurance coverage, diminished value may be an issue worth considering as part of a Louisiana property damage claim.
It can also be easy to overlook. After an accident, most people are understandably focused on getting their vehicle repaired, dealing with insurance, arranging transportation, and recovering from any injuries.
But getting your car back from the repair shop doesn’t necessarily mean you’ve recovered every loss associated with the crash.
Don’t Forget About Your Car’s Value After a Wreck
If someone else caused your accident, it’s worth looking at the bigger picture. Your vehicle may look the same after repairs, but an accident history could still affect what it’s worth when you eventually sell or trade it in.
If you have questions about a car accident claim in Louisiana, Cueria Law Injury Lawyers can help you understand your options.
Call (504) 525-5211 for a free consultation. We’re available 24/7, and there are no attorney fees unless we recover compensation for you.
