When you buy a car, it's value is at its highest. But as soon as you drive it off the lot, it begins to depreciate. The older the car and the more miles it has, the lower its value. But what happens when a car is involved in an accident? How much does the value of the car decrease?The answer depends on the type of car, but generally speaking, a car with an accident in its history will be worth less than one without.
This is known as diminished value, which is the difference in market value before and after the accident. Depending on the circumstances of the accident, an auto insurance company may pay for this decrease in value. To calculate the diminished value of a car, insurers use a formula called 17c. This formula takes into account the age of the vehicle, its condition before and after the accident, and other factors. It multiplies the value of the vehicle by a maximum of 10%, which is then used to determine how much money should be paid out for a diminished value claim. It's important to note that diminished value claims can be more complicated than other types of claims.
It's up to you to prove that your car has lost value due to the accident, which may involve conducting market research and consulting a damage claims company. If you have questions about diminished value or if you suffered serious injuries in an accident, talk to an attorney specializing in car accidents.
