How Much Value Does A Car Lose After an Accident?

While each situation is different, a vehicle’s value can drop by anywhere from 10% to 30% after an accident. This percentage depends on a variety of factors, including the severity of the damage, the type of car, and how well the repairs were performed.

Here’s a closer look at these variables:

The extent of damage is one of the biggest factors affecting how much value a car loses.

Minor Accidents: If your car was involved in a minor fender bender and sustained cosmetic damage (such as small dents or scratches), the value decrease will likely be on the lower end of the spectrum.

Moderate Damage: More significant damage, such as damage to suspension components or doors, can cause a higher decrease in value. Even after these repairs, some potential buyers may worry about long-term mechanical issues.

Major Damage: If your car sustained frame damage, severe structural damage, or airbag deployment, it may lose closer to 30% or more of its value. Structural repairs can impact a car’s performance and safety, which significantly affects buyer perception and appraisals.

When an accident is severe enough, the insurance company may determine that the car is a total loss. A car is typically considered totaled if the cost of repairs exceeds 70% to 80% of its current market value.

Once a car is totaled, it is often given a salvage title. This drastically reduces the vehicle’s value, often by 50% or more, depending on the market and the type of car. Even if the car is fully repaired, the salvage title stays with the vehicle, signaling to future buyers that the car has been in a major accident. Cars with salvage titles are much harder to sell and typically fetch lower prices.

Luxury and performance vehicles typically experience greater drops in value after an accident than standard economy cars. This is because high-end buyers often prioritize a perfect vehicle history. On the other hand, a 10-year-old car with high mileage may lose less value after an accident because depreciation has already reduced its worth.

Newer cars (less than three years old) tend to lose more value after an accident since they still hold significant resale potential. Buyers of newer cars are more concerned with a clean vehicle history and may offer much less than the pre-accident market value.

The quality of the repairs plays a critical role in how much your car's value decreases. Poor repairs can further lower a car’s market value by making the damage more noticeable or by compromising safety. For example, if a repaired vehicle shows mismatched paint, uneven panel gaps, or lingering mechanical issues, it will likely turn off prospective buyers.

By contrast, repairs performed by a reputable collision center, like Tucson Auto Collision Center, can help minimize the value loss. We use factory-grade parts, expert technicians, and advanced repair techniques to restore your car to the highest possible standard.

Vehicle history services such as CarFax and AutoCheck are popular tools for car buyers. These reports document accidents, title changes, and maintenance records, which means that any damage your car sustained in an accident will appear on the report.

Unfortunately, this makes it difficult to avoid diminished value. Even if your repairs are flawless, the presence of an accident on the vehicle history report may cause buyers to hesitate or negotiate for a lower price.

To fully understand how an accident can impact your car’s value, it’s important to know the different types of diminished value:

Immediate Diminished Value: This refers to the loss in market value that occurs right after an accident, before repairs are completed.

Repair-Related Diminished Value: This type of loss happens when repairs are poorly executed or parts are replaced with lower-quality components, resulting in visible flaws.

Inherent Diminished Value: Even if a car is repaired perfectly, it may still lose value simply because it has a recorded accident history. This is the most common type of diminished value.

In some cases, you may be able to claim diminished value compensation from an at-fault driver’s insurance company. However, insurance companies are often reluctant to pay out for diminished value claims and may dispute the amount. To strengthen your case, you’ll need to provide documentation, including:

• The car’s pre-accident market value
• A detailed accident report
• A repair estimate
• A professional appraisal of the diminished value
• Working with an experienced collision center can help you gather the necessary evidence to file a claim.

How to Protect Your Car's Value After an Accident

While you can’t completely prevent a decrease in value after an accident, you can take steps to minimize it:

Choose a Reputable Collision Center: Always have repairs done by a trusted, certified body shop. High-quality repairs will help your car maintain as much of its value as possible.

Document Everything: Keep detailed records of the accident, repairs, and any claims you file. This documentation can help prove the quality of the repairs and support a diminished value claim.

Use OEM Parts: Request original equipment manufacturer (OEM) parts instead of aftermarket parts to ensure that your car is restored to factory specifications.

Get a Professional Appraisal: If you plan to sell your car, a professional appraisal can give you an accurate estimate of its post-accident value.

Trust Tucson Auto Collision Center to Protect Your Car's Value

At Tucson Auto Collision Center, we understand how stressful accidents can be. That’s why we’re committed to providing expert repairs that restore both your car’s appearance and performance. Our certified technicians use state-of-the-art equipment and high-quality parts to ensure your vehicle is as close to its original condition as possible.

If you’ve been in an accident and want to protect your car’s value, contact us today for a free estimate. We’ll walk you through the repair process and help you make informed decisions about your vehicle.

By knowing how diminished value works and taking the right steps after an accident, you can minimize financial loss and keep your car in top condition. Let Tucson Auto Collision Center be your partner in restoring your peace of mind.