Car crashes often have consequences that affect someone for years after the wreck. Serious injuries can leave someone in need of ongoing medical treatment for the rest of their lives. Major injuries can also have a negative impact on someone’s earning potential.
There are also property damage losses to consider. It could cost thousands of dollars to repair a damaged vehicle after a crash. Sometimes, drivers need to buy a new vehicle because theirs is no longer safe to operate, and often property damage liability coverage isn’t enough to pay for the cost of a new vehicle.
Those who can just repair their vehicle instead of buying a new one may be grateful, as insurance is more likely to fully cover their expenses. In such a situation, you have to consider the resale value of your vehicle in addition to the repair costs to make an appropriate insurance claim.
Why diminished value claims exist
Any collision or similar damaging incident will affect the longevity and therefore the resale value of your vehicle. Even when you make repairs to erase the cosmetic evidence of the crash, the prior collision could still limit how effectively the vehicle protects someone in a future crash.
Records of the collision will typically affect what buyers will offer for the car on the secondhand market or what dealerships will offer for it as a trade-in. That lost resale value is part of the financial effect of the crash, just like the repair costs.
The more valuable and prestigious your vehicle, the greater the financial impact of a crash on its resale value. Adding the diminished value of your vehicle to your insurance claim can help you maximize compensation and help you hold the appropriate party responsible for the reduced value of one of your highest-cost assets.
Knowing your losses is necessary after a crash
You have to have a realistic idea of how a crash will affect your finances if you expect to hold the other party accountable for your losses. The average person could easily overlook claimable costs and might therefore accept a settlement that is lower than what they truly deserve.
Learning more about what insurance covers following a motor vehicle collision can facilitate a more thorough financial recovery.
