What is my car’s value after an accident?

Every driver hates the thought of getting in an accident, but we know that accidents happen every day. We hope that it will just be a fender bender, but what if it’s more than that? Once you’ve been in an accident and your car has been damaged, you need to know what your car is worth. Insurance companies don’t make this calculation easy, so here are some steps you can take to find out your car’s value after an accident.

How much damage is too much?

To begin with, just how damaged is your car? Frankly, it matters more how your insurance company has labeled the damage than what you think the damage is. When your insurance company made their valuation on your car, did they label it as salvaged or rebuilt? If so, this is going to significantly reduce your car’s value. Having a salvaged or rebuilt car means that your car was damaged to the point that it would have cost more than the car was worth to fix it.

When considering a new car, buyers will typically check sites like Carfax or AutoCheck to review the history of the car. Your accident will almost certainly show up on those sites, and many potential buyers are scared off by accident histories. A car with an accident history signals that the car needed repairs. Buyers are hesitant to purchase these cars because there’s no way for them to know exactly how much damage was done, what repairs were made, or how skilled the mechanic was.

Buyers are especially leery about sellers who are selling cars with a salvage or rebuilt title because those cars have clearly been very damaged or weren’t even worth much before the accident. When the demand for a car goes down, the value of the car goes down.

What if my car isn’t salvaged or rebuilt?

If your car isn’t salvaged or rebuilt, your next hurdle is how much damage still exists. A major consideration in determining your car’s valuation after an accident is whether or not you’ve had it repaired. If your car is still damaged and has not been repaired, it will be worth less than it otherwise would be. Buyers typically do not want to purchase a car that will be a hassle for them. They want a car that is already functional with as few problems as possible. Buyers do not want to run the risk of finding out that more things are wrong with it and having to spend more money to fix the car. You can expect some depreciation on your car after the accident.