Auto accidents don’t just damage your car right away; they can also affect its future value. Even with excellent repairs, most cars lose some resale or trade-in value, a loss known as diminished value.
You may wonder, “How much is my car worth after an accident?” It depends on the severity of damage, how well it was repaired, and how accident history appears on reports like Carfax.
Being aware of this information shapes your expectations, helps you negotiate with buyers in good conscience, or even file a diminished value claim with your insurance provider.
What Is Car Depreciation Post-Accident?
Accident depreciation refers to the reduction in your car’s worth after it has been involved in an accident or completely repaired. Future purchasers and those buying used cars view vehicles with accident history as being poor. They assume there could be underlying damage or a greater possibility of future failure. This negative image reduces the worth of the car.
Factors Influencing Post-Accident Depreciation
Several significant factors determine the amount of value your car depreciates after an accident, including:
Severity of the Accident
The degree of damage is the biggest factor in depreciation. A small fender-bender requiring only cosmetic work may have a minimal effect. But a serious impact with structural repair, airbag inflation, or frame damage can reduce a vehicle’s worth by 15% to 20% according to DV Check.
Quality and Type of Repairs
How your vehicle is repaired also impacts its worth. Repairs done by manufacturer-approved dealerships with Original Equipment Manufacturer (OEM) parts help lower depreciation because both the dealers and the consumers are confident of the repair quality.
Low-quality repairs, aftermarket parts, or incorrect paint matching are red flags and can dramatically depreciate resale value. Clean, detailed records of quality repairs play a very important role in proving your car’s worth later.
Car’s Age and Mileage
A newer car with low mileage usually experiences higher depreciation after an accident compared to an older, high-mileage car. For example, a three-year-old car with 25,000 miles can lose several thousand dollars in value if it is involved in an accident and is damaged, while a ten-year-old car with 150,000 miles will only suffer a minor decline since buyers already expect deterioration. In general, the more recent the car, the more buyers will expect it to be “accident-free.”
Accident History Reports
With the new digital age, it is almost impossible to hide accident history. Organizations like Carfax and Auto Check factor in collision, repair, and even insurance claims.
Even if your car looks and runs like new after professional repair, the very fact that it carries a “history of accidents” can shave 10–15% off bids on average. Buyers use this report as a negotiating tool to purchase cars at lower prices.
Claiming Diminished Value
In some US states, you may be legally entitled to file a diminished value claim against the insurance company of the fault party to recover the loss in the value of your car.
These claims recover the difference between the value of your car before and after the accident. Not all insurers accept these claims, so it is advisable to review your policy and the laws in your area.
How to Protect Yourself from Excessive Depreciation
Maintain a thorough file of repairs to show that quality parts and professional services were utilized. Consider certified repair facilities that your maker would find acceptable. Contact your insurance company or lawyer to explore the possibility of pursuing diminished value payments.
Conclusion: Saving Your Car’s Value
Car depreciation following an accident is a certainty. But knowing what impacts value and keeping close records puts you in charge. Your vehicle will never be as valuable as it was prior to the accident. But by doing the proper steps, you’re better protected for what’s down the road.
