Being involved in a car accident can be devastating. Sometimes, in addition to severe injuries, you also suffer losses due to property damage.
Your car may need repairs or even be declared a total loss. In any case, you will want to receive payment for the property damage claim made against the at-fault driver’s insurance or your insurance, depending on your claim.
However, one thing is certain about the value of your vehicle after an accident: it is lower than its pre-accident value. So, you might wonder, “How much is my car worth after an accident?“
You should not be surprised when you receive the insurance adjuster’s offer for your car’s value. If you, a loved one, a family member, or a friend are involved in a car accident in California, you’ll want to know what to do afterward. Part of this involves understanding the factors surrounding property damage and what you can receive after assessing damages.
It is essential to have proper representation from a trusted personal injury law firm in California to handle your claim. A personal injury attorney will help you get a better settlement for your property damage claim.
Throughout the process, you will be well-informed about your case and learn more about why your car is valued the way it is without the stress of negotiating with the auto insurance company.
What Happens If My Car Is Declared a Total Loss?
A total loss declaration is a common issue for many people involved in a car collision. A car is not defined as a total loss in a single way, as insurance companies declare it differently and use various factors to do so.
California’s Total Loss Law states that insurers consider a vehicle a total loss or a non-repairable car if the repair costs plus the salvage value are greater than or equal to the actual cash value of your motor vehicle. To determine how much your car is worth after an accident, you need to consider this formula:
Repair Costs + Salvage Value ≥ Actual Cash Value
- Repair Costs: The cost of repairing the car to make it operational again.
- Salvage Value: The salvage value of your damaged car or what the insurance could get if they sold the wreck or its parts.
- Actual Cash Value: The actual cash value of your vehicle, considering its age, mileage, condition, and other factors.
You or your personal injury law firm can take your car to a body shop for an evaluation so you know its condition and repair costs. Once your vehicle is declared a total loss, the insurance provider will pay you the actual cash value of your car.
You can then use this amount to buy a new car. Before that, you will need to transfer the title to the insurer. The insurer will likely sell the remains of your vehicle.
However, if the insurance company does not declare it a total loss, you will receive the value of the repairs needed for your vehicle. You can then go to a body shop to start the repairs. You can decide whether to use it or sell it.
How Does an Accident Affect the Value of My Repaired Car?
How much is my car worth after an accident, and how do repairs and accident history affect its market value? Even if your vehicle has been repaired, the accident will be part of the Vehicle History Report.
Service providers like Carfax can access this report online. Since your car is listed there, you should expect the accident to depreciate your vehicle’s value.
In summary, when you plan to trade in your car later, potential buyers will see this report and may not accept the high offers you might have in mind. This is especially true if you have a luxury car.
Surface damage to a fender can cost around a hundred thousand dollars or more. Imagine if such a vehicle suffered more severe accident damage. Besides the severity of the damage and the type of car, other factors affecting value include:
- Vehicle Age
- Condition (well-maintained or not)
- Brand and Model Popularity
Therefore, for any car you own, your repaired car will have thousands of dollars less in value from the moment it was involved in an accident.
Involved in a Car Accident in California?
If you or someone you know is involved in a vehicle collision, you should be represented by a personal injury attorney. In addition to receiving proper treatment and fair compensation for your injuries, you will also get better value for your vehicle’s property damage.
Our experienced car accident attorneys are always at the top of their game to ensure you get the best representation for your accident insurance claim. At Farahi Law Firm, APC, our legal team will handle your case on a contingency basis, meaning you won’t pay a dime until we achieve the justice you deserve.
Contact us at (844) 824-2955 for a free legal consultation.
