Assessing Car Value After Accident Repair: What You Need To Know
Pretty much everyone will be involved in a car accident at some point in their lives. Regardless of whether you are in a small fender bender or a major collision, one thing car owners wonder about is how much the accident will lower the value of their car. With that in mind, the team at Formula 1 Collision Center is here to answer your questions about car value after accident repair.
Schedule an appointment at our collision center in Tucson today! We’ll have your car fixed in no time flat after a crash.
Car Accident Value and Insurance
At the end of the day, what matters is how much your insurance company values your car after an accident, not the “actual” value. If your car has sustained sufficient damage, they may label it as salvaged or rebuilt, which means the total damage to the car outweighs its value.
If your car is not totaled, then whether or not you get repairs matters. Buyers are much more hesitant to buy cars that have issues and prefer vehicles that have a clean bill of health and good repair quality. Regardless of what kind of damage your car sustains, its resale value will drop after an accident.
17c Diminished Value Formula—The Basics
Most insurance companies use something called the 17c Diminished Formula to determine your car value after accident repair. The basic formula is:
- Base loss of value x (damage modifier) x (mileage modifier)
The base loss of value is equal to 10% of the car’s Blue Book value before the accident. For example, if your car was worth $20,000 before the accident, the base loss of value is $2,000.
The damage modifier is a percentage your insurance company determines based on the severity and type of damage. The less damage the car has, the lower the damage modifier.
The mileage modifier, as the name implies, depends on the mileage of the car. The less mileage, the higher the mileage modifier percentage.
Will Maintenance Preserve the Value of My Car After an Accident?
A history of regular car maintenance can affect the value of your car after an accident, though not directly. Used and rebuilt cars are much easier to repair if you have comprehensive documentation of all the work performed on the car. So, if you get regular maintenance and document all that work, you will probably have an easier time selling a rebuilt car and can sell it for a higher price. Not documenting car maintenance and repairs can make it significantly harder to sell, depending on the current market trend.
Collision Repair in Tucson and Surrounding Areas
Read our blog to learn more about what causes car collisions. We can help you determine the total value of your car after accident repairs. If you have any more questions about your car value after accident repair, contact Formula 1 Collision Center online or give us a call today at (520) 369-4291 to schedule an appointment!
