Diminished Value after a Car Accident

A traffic accident can be a very expensive problem, between repair costs and increases in auto insurance premiums. Unfortunately, that is not the only way you may lose money. If you decide to sell your car in the future, you will be legally required to disclose its history, including the accident. As a result, you may not be able to get as much money for your vehicle.

Depending on the circumstances of your accident and the details of your insurance policy, you may be able to receive some compensation for the diminished value of your car. To learn more about Chicago auto insurance policies, including free quotes, call Insure on the Spot at 773-202-5060.

Why Accidents Diminish Car Values

Your car accident was a long time ago, and you were sure to have your car fully repaired after it happened. So why would your car still be worth less today? There are several potential reasons:

• Perceived diminished value: People who are purchasing used cars are more likely to choose ones that have never been involved in car accidents when all other factors are equal. It may not seem fully logical, but people simply feel safer in cars with clear histories, regardless of the number of repairs that have been made.
• The risk of inadequate repairs: People’s reluctance to buy cars that have been in accidents is not without merit, however. Cars are often repaired with used parts, or parts that were not produced by the original manufacturers. This can affect their future reliability.

Unfortunately, there is no guarantee that you will be reimbursed for losses related to diminished value; it depends on many different details. Our Chicago car insurance agents can answer any questions you may have about available policies that could benefit you.

Contact Us

Car ownership is costly enough without paying too much for insurance. For free quotes and other information about Chicago auto insurance policies, contact Insure on the Spot today at 773-202-5060.