Accident damaged cars often still have value. However, depending on the severity and type of accident, the value of the automobile may be severely diminished. Furthermore, although rare, it is also possible for a car to be completely worthless after being involved in an accident.
The Blue Book Value of Automobiles
Insurance companies and the legal world rely on the “Blue Book” to value automobiles. This book contains information on all types of cars and values them according to their age, mileage and features. The value of an automobile is determined at the time of the accident. Note, however, that the Blue Book does not adjust a car’s value based on its previous involvement in accidents, which could potentially make its valuation misleading.
The Totally Destroyed Vehicle
A vehicle is considered worthless if, after being involved in an accident, the cost of repair exceeds the blue book value of the car. When investigating an accident claim, insurance companies will always check to see if the vehicle is totally destroyed and, if so, will pay the value of the car because that is the cheapest way to resolve the claim. If, however, the cost of repairs is less than the value of the car, the company will most likely choose to pay for repairing the vehicle.
Remaining Value: Unrepaired Automobile
Because the damage does not impair the vehicle’s functioning or because it is small and inconsequential, many drivers elect not to have repairs made to their automobiles following an accident. While potentially an economical choice, not repairing a vehicle when needed vastly diminishes the value of a car. The value of an automobile that has not been repaired after an accident is significantly lower than that of the same vehicle that shows no visible signs of wear and tear.
Remaining Value: The Extent of Needed Repairs
An automobile involved in a small accident which does not necessitate extensive repairs will retain value after the accident despite its damage. A car that is anticipated to be usable for many more miles or which did not need its mechanics, such as the engine, worked on after the accident will still be considered to be of high value. The smaller the repairs that need to be made to a car after an accident, the higher it will be valued.
Getting Legal Help
If you have been involved in an auto accident and need to know the value of your automobile, seek legal advice. An attorney will review the specifics of your car and estimate its value following the accident.
