Making an insurance claim following a motor vehicle collision can compensate you for property damage losses and any injuries you suffer. Often injuries are the most expensive consequences of a crash as people may have hospital bills and lost wages to recoup, but not every wreck results in someone getting hurt.
When it comes to property damage, the worst-case scenario is a totaled vehicle, which occurs when the insurance company decides the vehicle is no longer safe for someone to drive. If the damage to a vehicle is minor enough, insurance may pay for the necessary repairs to make it safe to drive again.
Before a driver settles an insurance claim just for property damage costs, they need to consider another expense.
The crash will reduce your vehicle’s resale value
A motor vehicle collision that damages your vehicle will cost thousands in repair expenses. Even if the repairs completely erase signs of the crash, the damage will potentially diminish how much the vehicle is worth when you resell it.
Whether you sell it directly to someone else or trade it in at a dealership to use its value toward a new purchase, the prior collision will diminish the value that you receive for the vehicle. That diminished value could range from a few hundred dollars to several thousand dollars. The more expensive your vehicle is, the bigger the possible impact of a crash on its resale value.
If you can accurately estimate the likely diminished value of your vehicle you can potentially integrate that into an insurance claim. Creating a realistic estimate of your costs following a motor vehicle collision will help you obtain appropriate compensation for your losses.