The driver at fault for a collision is typically responsible for compensating the people affected. They provide insurance coverage to pay for injury-related expenses and property damage. Most people recognize that insurance or a lawsuit could help them pay to repair a damaged vehicle.
However, what they may fail to recognize initially is how the history of a major collision could affect the resale or trade-in value of that vehicle later. Even though it looks the same, anyone who pulls a vehicle history report can discover that a serious crash occurred previously.
Can those concerned about diminished resale value include that in their compensation claim after a wreck?
Diminished resale value is sometimes recoverable
Factors including the value of the vehicle, the amount of damage to the vehicle and the policy limits of the driver at fault affect compensation after a crash. If drivers have received repair cost estimates that are clearly lower than the total property damage coverage available, then they may be able to make a claim for compensation based on the diminished resale value of the vehicle as well.
Typically, such claims need to be part of the primary negotiation process, as those who have already settled with the insurance company usually cannot request more compensation later. It is of the utmost importance to have a realistic idea of how repairing the vehicle might affect its resale value later.
Requesting compensation for diminished vehicle value after a collision is a reasonable reaction to a serious wreck. People seeking to optimize their financial recovery after a major motor vehicle collision may need support reviewing the available coverage, estimating their losses and communicating with insurance companies, and that’s okay.