How Much Does a Car Depreciate After an Accident?

Automobiles are essential for most people. Owning a passenger vehicle enables people to commute to work, run errands, and enjoy recreational and social outings. The fact that over 295 million vehicles were registered in the U.S. in 2025 demonstrates how much value people place on vehicle ownership. 

Vehicle purchases are also among the most expensive purchases most people make. Despite people’s hefty financial investment, vehicles lose value over time. A vehicle usually depreciates significantly after an accident, with the exact amount depending on the severity of the damage. 

Minor accidents may reduce the car’s value by around $500 or less, while more serious collisions can result in losses of several thousand dollars. On average, cars lose about 10% to 30% of their value following an accident, though in cases of extensive damage, the loss can be as high as 50%. 

As the impact varies widely, it’s important to consult a car accident attorney to understand the diminished value in your specific situation and explore your options for recovery.

What Does Depreciate Mean?

Depreciation refers to the decline in something’s value. Some things appreciate over time, while others depreciate. Whether an asset appreciates or depreciates depends on multiple factors, such as:

1. Availability

When vehicles are widely available, their value tends to drop faster. Limited supply or rare models hold value better, while mass-produced cars depreciate quickly due to easy replacement.

2. Demand

High consumer demand helps sustain a car’s value, while low demand accelerates depreciation. Popular models, fuel-efficient cars, or those with strong reputations depreciate slower compared to less desirable vehicles.

3. Economic factors 

Broader economic conditions influence depreciation. Inflation, interest rates, fuel prices and market trends affect resale values. Economic downturns or rising costs can reduce buyer interest accelerating depreciation across most vehicles.

Although antique or collector cars may increase in value over time, most vehicles depreciate or lose value. Their value depreciates when you buy them, and the longer you own a vehicle, the more it depreciates. 

Factors That Affect How Much Your Car Depreciates After an Accident

While there are plenty of factors that can affect how much does car depreciate after accident, some of the most common factors that can influence your vehicle’s depreciation value include: 

1. How severe the damage is

The extent of damage directly impacts depreciation. Minor dents reduce value slightly, while major structural or safety-related damage can cause steep losses, sometimes reaching half the car’s worth.

2. How old is the car, and the condition before the accident

Newer cars or those in excellent condition lose more value after accidents because buyers expect them to be pristine. Older, already worn vehicles depreciate less since damage matters less.

3. The make and model of the vehicle

Luxury, rare, or high-demand models may retain more value despite accidents, while common, mass-market vehicles depreciate faster. Brand reputation, reliability, and resale desirability strongly influence diminished value outcomes.

4. Today’s market value of the car

Current resale trends affect depreciation. If the market value is already low, losses may be smaller. Conversely, high-value cars experience sharper depreciation because accidents drastically reduce buyer willingness.

Impact of Minor vs. Major Accidents

Minor accidents reduce worth by about 10% to 15%, often translating to $500–$2,100 in lost value. Severe crashes, especially those involving structural damage or airbag deployment, can cut 30% to 50% of a car’s pre‑accident value. High‑end vehicles tend to lose more monetary value than older cars with high mileage because buyers expect luxury cars to remain pristine.

Whether the accident damage is cosmetic or structural, the car’s value after an accident is always lower than its pre‑accident worth.

Diminished Value Claims

Following a car accident, a diminished value claim occurs when the car is subsequently less than what it was originally worth prior to the damage. These types of claims are common when the vehicle is relatively new. 

The overall concept behind diminished claims is that consumers will likely not pay as much for a damaged vehicle as they would for the same vehicle without any such damage. By filing a diminished value claim, you may be able to regain the loss to your vehicle’s value following the accident, regardless of whether you seek to sell your car. 

Types of Diminished Values

There are various types of diminished values that can be important to understand if you are considering filing a diminished value claim. The different types of diminished values include: 

1. Immediate diminished value

This refers to the reduction in a vehicle’s resale value immediately after an accident, before repairs are made, reflecting the car’s damaged condition and decreased market appeal.

2. Inherent diminished value

Even after proper repairs, a vehicle loses value simply because it has an accident history. Buyers typically pay less for cars with prior damage, regardless of repair quality.

3. Repair-related diminished value

This occurs when repairs are incomplete, poorly execute, or use non-original parts. Visible flaws, mismatched paint or structural compromises further reduce the car’s resale value beyond inherent depreciation.

Your experienced personal injury attorney can help you assess which types of diminished values are relevant to your particular case. 

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Does a Car Lose Value After an Accident?

A vehicle loses value after it’s been in a car accident. Depending on the severity of the damage, car accidents can affect the vehicle’s structural integrity. Structural damage can reduce the car’s safety rating. In some cases, damage from an accident can also trigger other mechanical issues. 

How Much Value Does a Car Lose After an Accident?

The amount a vehicle depreciates after a car accident depends on the severity and nature of the damage. You may wonder how much a minor accident affects car values — a minor accident could result in $500 or less lost value. However, severe accidents could cost you thousands in diminished value.

Cars Typically Lose 10 to 30% of Value After a Car Accident

Following a motor vehicle accident, the car itself typically loses approximately 10% to 30% of its value following the damage. However, the loss of value can be as much as 50%, depending on the extent of your damage. It’s important to discuss the extent of your loss of value with your car accident attorney so they can effectively guide you and offer appropriate legal advice about your situation.  

How To Calculate a Diminished Value

Following an accident, it’s important to understand how to calculate the diminished value, as this value will help you move forward with either filing a claim or selling your vehicle. Once you have sought medical treatment and contacted an attorney, calculating the diminished value of your car should be relatively high on your post-auto accident to-do list. 

In order to properly calculate the diminished value of your car, be sure to take the following steps:

• Determine your car’s Blue Book value
• Determine the market value’s 10% cap
• Figure in the damage multiplier

If you are struggling to determine the appropriate diminished value of your vehicle or dealing with difficult insurance adjusters, the experienced car accident attorneys at Jack Bernstein, Injury Attorneys, are eager to assist.

Methods Used to Calculate Diminished Value

Insurance companies often rely on the 17c Formula to calculate diminished value. This formula begins with a 10% base loss of the car’s value, then applies damage and mileage multipliers to reduce the payout. While widely used, it often results in lower compensation than actual market loss.

Other methods include Kelley Blue Book estimates, professional appraisals conducted within 30 days of the crash, and dealership trade‑in offers, which may be 15% to 25% lower for vehicles with accident history. Using multiple valuation methods helps establish stronger evidence for fair compensation.

Is There a Way To Receive Compensation for the Diminished Value After a Car Accident?

You can file an accident insurance claim to cover the cost of repairs after your accident. You can also submit a claim for the diminished value. You’ll need to have your vehicle repaired first and have it appraised. Deduct the vehicle’s value after it’s repaired from its value before the accident to determine the diminished value amount you can claim.

How Insurance Companies Handle Diminished Value Claims

Insurance companies frequently reject diminished value claims, arguing that the damage was too minor or that depreciation isn’t significant. They rely on formulas like the 17c Formula, which often undervalues the true financial impact. To win a diminished value claim, you must prove your car’s value after an accident is lower than its pre‑accident worth.

This requires repair records, vehicle history reports, and a professional appraisal. Because insurers aim to minimize payouts, having the right evidence and legal guidance is essential to secure fair compensation.

How to Protect Your Car’s Value After an Accident

While you cannot erase accident history, you can take steps to protect your car’s value. Insist on Original Equipment Manufacturer (OEM) parts during repairs to preserve structural integrity. Choose certified repair shops that provide quality repairs and maintain complete documentation files, including repair records and vehicle history reports.

Storing digital copies safely ensures you can present evidence if you file a claim. Professional appraisals conducted soon after the accident also establish baseline value loss and strengthen negotiations with insurance companies.

Filing a Diminished Value Claim

In certain situations, filing a diminished value claim can be the best option for victims of an automobile accident. 

When can I File a Diminished Claim?

If you are wondering whether you can file a diminished claim, you should discuss the situation with an experienced car accident attorney, as they will be able to guide you in the proper direction in terms of legal advice. 

Some things you should take into consideration prior to filing a diminished value claim include: 

• Your vehicle’s value before the accident: Depending on the value of your car prior to the accident, you may be eligible for substantial repayment, or it may not be worth the time it takes to file a diminished claim
• Comparative negligence — were you partially at fault?: Your ability to be compensated for the diminished value of your vehicle may be impacted depending on the extent to which you are liable for the cause of the car accident
• Make and model (value of the car): The make and model of your vehicle can play an important role in determining whether it is worth it to file a diminished value claim, as a more expensive luxury vehicle may be eligible to receive more compensation than an older, non-luxury vehicle

If you have been involved in a car accident and are considering filing a diminished value claim in Tampa, then be sure to discuss all of these factors with the Florida car accident attorneys at Jack Bernstein, Injury Attorneys.

Can a Car Accident Attorney Help You Recover Diminished Value After Your Accident?

A car accident lawyer fights to protect your rights and seeks compensation for property damage and vehicle depreciation costs incurred after an accident. At Jack Bernstein, Injury Attorneys, we’ll investigate the accident, gather relevant materials, file legal paperwork on your behalf, and negotiate with the at-fault driver and their insurance company. We won’t charge any legal fees until you receive the compensation you deserve.

Frequently Asked Questions (FAQs)

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