How much does a brand new car diminish after a wreck?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jan 31, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Jasper, AL

Asked on 01/31/2012

How much does a brand new car diminish after a wreck? I had just purchased a brand new vehicle wednesday night and then first thing Thursday morning was rearended. The car was a 2012 Ford Edge Limited with only 100 miles on it , i literally had the car 12 hrs before this guy ran into me.

Answer given on February 02, 2012

The dimished value of a car can be quite a bit after a wreck, especially on a new car. Diminished car value is the difference between what the vehicle was worth before a car accident and what it is worth after the accident. The thought being, that because the reliability and safety of a vehicle has been compromised after an accident, once a consumer finds that a car has been involved in accident they will likely value the car less. There are certain auto insurance compannies that will replace your car with a brand new car if the car is wrecked or totalled within the first 10,000 miles.  Check wtih your auto carrier and see if this is an option.  If not, you may need to make a claim forthe dimished value. Read our article on Diminished Value and Car Insurance.  This article will give you tips on how to prove your dimished value claim. You will need great documentation on the value of the car before and after the accident repair. If you find that the insurance adjuster will not entertain the diminished value claim for your vehicle, you can consult with an attorney. An attorney can help you recover for your car’s diminished value by showing you suffered a real loss in the car accident and that you should be compensated. Click here for an attorney in your area.

IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and AS IS. It has not necessarily been reviewed by the management staff of nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption