How much is my car worth after an accident?

If you’ve been involved in a collision and your car has been damaged, you’ll have a lot on your mind. Assuming nobody was hurt in the crash, the value of your car may be causing you sleepless nights. Just how much is a car worth after an accident? Is it worth considerably less than before?

What is an accident damaged car?

The obvious answer is that an accident-damaged car is one that has been in an accident and has sustained damage.

Hopefully the damage is slight. But after a big crunch the car will almost certainly need some extensive repairs.

That means involving your insurance company. The insurer will take a view as to whether the car can be economically repaired. If it can be, and you have fully comprehensive insurance, your policy will pay to put the car right. However, if the damage is very bad, the insurer may conclude that it’s too expensive to fix. Instead, they will pay out what they see as the value of the car and it will be ‘written off’.

Write offs fall into different categories. A Category S car has suffered structural damage. A Category N has no structural damage, but enough cosmetic harm to make the car too pricey to fix.

Touch wood, the damage won’t be bad enough to make your car a write off. Instead, it will be repaired and put back on the road. The question is, what does this do to the car’s value? Will it be harder to sell an accident-damaged car? And will the car be worth less, even once it has been repaired?

How much is my car worth after an accident?

If you have third-party cover that won’t pay for repairs to your own car, you may decide not to have the cosmetic damage repaired. However, if the car is a bit bashed about but still safe, legal and roadworthy, it will still be worth less than it was before the accident. So, leaving the car with light damage could be a false economy in the long run, as it will be harder to sell if it’s still damaged.

A much more likely scenario is that you have fully comprehensive insurance, and the car is repaired with your insurer footing the bill. Provided the car is repaired to a professional standard, it should be returned to you in the same condition it was before the accident.

If a future buyer is aware that the car has been in an accident, it will knock something from the car’s value, however well it has been repaired. It might seem unfair but there will always be a slight doubt in the buyer’s mind about any lingering unseen damage.

The loss in value will be more significant if the damage is still apparent after the accident. There’s an even bigger loss in value if the car is an insurance write-off.

Even if the insurer decides the car is too expensive to be worth repairing, you may decide to have the car put right and back on the road. Even after it has been fixed the car will still show as a repaired insurance write off if a future buyer carries out a history check. By law, you must declare that the car has been written off when you sell the car, and this will knock a significant amount from the car’s market value. The figure will vary, but it could be 20-50% less than a car that hasn’t been damaged in an accident.

What affects my car’s value after an accident?

Many factors contribute to a car’s loss in value following an accident. These are some that prospective buyers will consider when looking at a crash-damaged car:

• Extent of damage. The worse the damage, the bigger the loss in value. A few scratches after a car park mishap will cause a much smaller loss of value than structural damage.
• Quality of repairs. After most collisions, professional repairs can bring the car back to the same condition as before the accident. However, substandard repairs will make it obvious that the car has been damaged. If the car’s battle scars are easy to spot then the loss in value will be significant.
• Whether the car has been written off. This is a really big factor in a car’s value after an accident. Even if the car is as good as new, there’s a stigma attached to being an insurance write off. Some buyers won’t touch a write off, however keen the price. Others will consider buying the car, but only at a big saving over the normal market value.
• Age of car. If a car that’s just a few months old shows signs of damage, it will really put buyers off. Some minor damage will be less of a barrier when selling a car that’s been on the road for a decade or more.

FAQs

Does accident damage affect car value?

Yes, it does. How much accident damage affects a car’s value will depend on various factors, including the standard of repairs and whether the car has been written off by the insurance company.

Can I check if my car has been in an accident?

A history check will tell you if the car has been written off and repaired. You can and should also make a visual inspection of the car to check for any signs of accident damage. These include poorly aligned panels and mismatched paint colours. An MOT history check can also show evidence of damage or repairs.

Is my car worth less after accident repair?

Yes, although just how much less will depend on the extent of the original damage and the quality of repair. A car that has suffered major structural damage will be worth less than one which has only needed light repairs to the bodywork or paint.

Looking for an easy way to change your car? Then Carwow is the place to go. You can sell your old car for a great price, and get the best deals on a new one. All through our network of trusted dealers and all from the comfort of your home. Tap the button below to get started today.