Question about depreciation from accident
 

After putting a whopping 2000 miles on my '05, a couple of days ago I had a guy make a turn in front of me and did significant damage to the front drivers side quarter panel, front bumper, wheel etc. Haven't had an estimate yet but I would guess about 3-5 grand in damage.

My question is dealing with the insurance company. I wasn't injured and I'm not a fan of people that develop back and neck pain.....but my assumption is that even if the car is fixed and there's no major damage to anything but sheet metal and plastic the value of the car has to drop after an accident. Would I be correct in assuming I will be entitled to depreciation as a result of the wreck? If so, how do I calculate what would be a fair settlement in regards to that.

Thanks for any help

RE: Question about depreciation from accident
 

I hate to be the bearer of bad news, but you will not receive any depreciation from the accident. Your insurance will only cover the damages and nobody ever receives extra money because the value of the car will go down when you're selling. Good luck trying to get more money out of them, but that's just tough luck when it comes to accidents.

RE: Question about depreciation from accident
 

A guy I work with was successfully able to work out an additional agreement for depreciation after a guy rearended his BMW on the Interstate. Didn't go to court, they resolved it in an arbitration hearing but he recieved something in the $3000 range.
-Chip in SC

RE: Question about depreciation from accident
 

Why is the car value going to go down if the car is completly fixed? The "idea" that it was once in an accident?

RE: Question about depreciation from accident
 

Because most people would not pay the same a mount for a car that has been in an accident as they would for one that hasn't. And with services like CarFax, it's very easy to find out.

If I was looking for a used car I would skip any car that has been in a significant accident unless it was an extremely hard to find model.

RE: Question about depreciation from accident
 

Not so here in the state of Georgia. The insurance company of the person at fault by law, is to pay for the depreciation value of the other persons car. That only is if they do not total the car. Check with your insurance company, they will tell you the depreciation value.

Kev

RE: Question about depreciation from accident
 

For the sake of the company i work for and my job security i cant say who it is exactly is my employer, but i will simply say it is a very large company and deals with issues like this. The one thing i can tell you is, i see cars all day long, look at wholesale market values for vehicles, analyze retail pricing as well, and see all walks of life in autos. The one true thing that really does effect value is frame damage. There is a certain level of paintwork that is typically acceptable, and considered normal on any automobile after a certain amount of time, but anything that would have hurt and damaged the frame or structural integrity of the vehicle will depreciate the car. Anything cosmetic however, that isnt excessive, is considered normal. Obviously a car that has never had a panel cut out, and rehung, or dents removed and painted is more wanted by your typical car buyer, but a car with a little paint blending, and some panels repaired is no big deal as long as, like i said, the frame or structure of the car has not been compromised. So, feel at ease. HOWEVER, make sure you get someone competent and skilled at painting to fix it, or all of what i said goes out the window. A bad paint job is NOT hard to miss when ur looking to buy a car...and it makes your car look like crap. my .02

-Christian

RE: Question about depreciation from accident
 

appreciate it all.....I knew that you can recover for diminished value, just wondered if there was a formula. I looked up a couple of companies online that will do written estimates and I appreciate the suggestion to check with my own insurance company. I knew it was possible to recover this but didn't know if it was different from State to State.

This was some information I read on a local consumer advocates website that addresses it a bit also:

Don't be cheated by
The concept of diminished value occurs when you are in a car accident and the value of the car declines after the repair. You should always disclose any prior damage to potential buyers before you sell your car. The insurance companies hate the idea of bringing you “whole” when a car is fixed, but there is a tremendous amount of money at stake. The Dallas Morning News has reported that insurance companies are low-balling people throughout Texas. One man was offered $250 on an $11,000 repair. He took the company to court and received $3,500. State Farm has said that it does not believe in diminished value. There have been so many problems that diminished value consultants are now available to help you handle a stingy insurance company. Many insurance companies say that diminished value will raise rates, but this is actually false. If there is a raise, then it will be minimal. Don’t let your insurance company cheat you out of the money you deserve!

RE: Question about depreciation from accident
 

isnt' this what the GAP insurance is for?

EDIT nevermind, it wasn't a total. sorry.

RE: Question about depreciation from accident
 

No....gap is if you owe more than the car is worth. I certainly don't owe more than it's worth, but if you had a choice of buying car 'a' that had no previous damage, or car 'b' that had damage repaired, which would most be more likely to buy?