After a car accident in McAllen, your vehicle may roll out of the body shop looking good as new. However, there is an invisible defect that remains—one that only shows up when you try to sell or trade in your vehicle. This is known as depreciation or diminished value, and it can cost you thousands of dollars.
What Is Depreciation?
Depreciation is the decrease in your vehicle’s value over time. Every car naturally loses worth as it ages and racks up miles on the odometer. Normal wear and tear gradually chip away at what someone would pay for your vehicle. But accidents accelerate this process dramatically.
When your car has been in a collision, buyers view it differently, even if repairs restore its functionality. They see a vehicle with a damage history, and that history translates directly into lower offers. In Texas, the gap between what your car was worth before the crash and what it’s worth afterward is called diminished value.
Depending on the circumstances, your car can lose anywhere from 10% to 30% of its value after an accident, with some cases reaching losses as high as 50%. If your vehicle was worth $20,000 before someone rear-ended you at a stoplight, you could be looking at a value drop between $2,000 and $6,000. That’s a major financial blow, especially when you weren’t responsible for the collision.
Factors That Affect Post-Accident Depreciation
Accident damage can leave a lasting mark on your car’s market value. The amount your car depreciates depends on several elements that appraisers and potential buyers consider:
- Severity of the damage: Minor accidents that cause cosmetic damage affect value differently than collisions requiring frame repair or airbag replacement.
- Your car’s age and condition beforehand: A newer vehicle with low mileage typically holds more value and therefore has more to lose than an older, high-mileage car.
- Make and model: Luxury vehicles and high-end brands often experience steeper depreciation after accidents compared to economy models.
- Pre-accident market value: Cars worth more before the collision generally face larger dollar amounts in diminished value.
Recovering Compensation for Your Vehicle’s Diminished Value
When another driver’s carelessness puts you in this position, you should not have to absorb the financial hit. Texas law gives you the right to pursue compensation for your vehicle’s lost value through a diminished value claim filed against the at-fault party’s insurance company. This claim addresses the gap between your car’s pre-accident worth and its current market value, even after repairs are complete.
To support your claim, you will need documentation showing what your vehicle was worth before the collision and evidence of the value decrease. Useful documentation includes repair estimates, professional appraisals from dealerships, and valuations from resources like Kelley Blue Book or NADA guides.
How a Texas Car Accident Lawyer Can Support Your Claim
If you plan on filing a diminished value claim, you need an advocate on your side who will fight for what you lost. A Texas car accident lawyer brings valuable support to your case; they can work with appraisers and experts to determine the true extent of your vehicle’s depreciation.
They know what documentation insurance companies require and how to compile a compelling claim package. And they also have the skills to fight back against unfair offers and advocate for your fair compensation.
Don’t settle for less than what your case is worth. Contact a personal injury lawyer in McAllen today and start fighting for the full recovery you deserve.
