How Do Your Car Accidents Affect Your Vehicle's Value?

Have you ever been in an accident that has totaled your car? After a serious accident, a car loses most of its value. Apart from faulty functioning that may arise, a damaged car is almost impossible to resale at a reasonable price.

The value of every car decreases the minute you buy it or drive it on a public road. The initial decrease in value is around 5-10%. Then, after two years, no matter how great it performs or how amazingly you've maintained it, its value goes down around 10-15%.

By the third year, your car has lost almost half the value you bought it at initially. But if you had an accident, the decrease in value becomes double the normal rate. Overall, car accidents are stressful from all points of view. Besides having to deal with insurance companies, doctors (if you suffered injuries), plaintiffs asking you for compensation (if you injured others), and so on, you also have to deal with the car's diminished value.

Nobody in their right mind will knowingly buy cars that have been in accidents and suffered serious repairs. Of course, we would tell you to drive carefully to avoid having a car accident history in the first place, but that is too on the nose. Plus, you could drive as carefully as you can and still get in a serious car crash. So instead, we will explain to you how things work with car accidents, diminished values, and the importance of hiring a lawyer in some cases.

Repairs after an Accident: How They Influence Your Future Decisions

Not many people know it, but you can fully repair and restore a totaled car to its former glory. But the car would still have lost its value if you bought it for $30,000 or lower. Its value may fall by more than $18,000 within the first year of the accident. It also depends on the level of the damage.

If you are willing to keep the car for yourself, then it's fine. It won't matter, but the accident history will affect the price when you decide to sell it. For example, when the accident was catastrophic or the repairs were too expensive, it is better to sell the spare parts for a few hundred to a thousand dollars.

How Do Auto Insurance Companies Approach Car Accidents?

Think again if you think your auto insurance carrier will pay for the repairs and compensate you for the damage. Some of them do but never do they fully pay for the damages. Before they provide any compensation, they will need:

• Proof of accident;

• Proof of whose fault it was;

• Proof that you have contacted the party at fault;

• Proof you have contacted the insurance company of the at-fault party;

• Proof the accident was not your fault;

• Proof of the total cost of the repairs.

The first thing you need to do after a car accident (besides getting medical help and documenting everything related to the case) is contact a car accident attorney. Let's not even discuss the situation where you were at fault for others' property damage or bodily injuries. A session with an insurance company will be most likely confusing and not in your favor. However, suppose you are within your rights to ask for compensation in a negotiation with your insurer. In that case, you can win the case with Bressman Law if you are in Ohio, especially if the insurer tries to hold you responsible for an accident to have an excuse to raise your rates.

It matters less if you get in a car accident in Ohio or another state. Your accident history will give insurance companies very good reasons to increase your premiums. In other words, your damaged car will witness significant value decreases while you will witness significant insurance rates increases. Even the tiniest scratch can get you in trouble. If history proved anything, few people can fight and win against insurers by themselves.

Why Hire A Car Accident Attorney?

When the insurance company refuses to pay, it is best to talk to a car accident lawyer. Such an expert understands how to compensate you for all the repairs and other out-of-pocket expenses. Their job is to fight the insurance companies and at-fault parties on your behalf.

Florida is home to one of the most dangerous highways/motorways, the I-95, which has an annual accident rate of 200,000, per the National Highway Traffic Safety Administration (NHTSA) data. Texas has the highest rate of fatal car accidents in the nation. In addition, South Carolina, Mississippi, and Louisiana have recently ranked as the most dangerous states for drivers.

In such states, insurance companies work long and hard to make sure they protect their bottom lines when you slap them with a hefty claim. So, working with an experienced lawyer on your case can mean the difference between getting the compensation you deserve and walking away empty-handed.

Final Thoughts

Car accident attorneys know how to retrieve your insurance money and build a strong case against the at-fault party and their insurer to pay full; they could also recover compensation for your pain and stress. After all, dealing with a brand new car is hard enough as it is; imagine having a damaged or totaled car on your hands and no other choice than to look at it and count your losses.