Depreciation following an accident: Everything you need to know

• Depreciation: Despite complete repairs, vehicles can lose value, which is known as depreciation.
• Types: There is a technical depreciation (damage that is visible after the repair) and the mercantile depreciation (loss of value due to the fact that the vehicle has already had an accident).
• Calculation: There are two models for calculating the depreciation of an accident car, Hamburger Modell and the Ruhkopf/Sahm table; important values in the calculation include age of the vehicle, mileage, extent of damage and market situation.
• Reimbursement of costs: The insurer of the other party to the accident pays the loss resulting from the impairment.

What is a depreciation following an accident?

A traffic accident is a stressful and nerve-wracking situation. The time after the accident is also not easy. There are many to-dos for the injured party and he has to take care of a lot of things.

Depreciation is an important issue in the stressful period following an accident. But what exactly is the depreciation? How does the impairment calculation work and who pays it?

You can find all the answers to these important questions and tips in the following blog article.

definition

After an accident, the damaged car may lose value. This is called depreciation. Even if all damage is repaired, the vehicle may still lose value.

This loss in value plays a role in insurance compensation, so the loss in value must be calculated in order to provide fair compensation to the victim of the accident.

The loss in value is determined as part of an expert opinion by a motor vehicle expert. This first determines all important data required for the calculation and then determines the depreciation.

Types of impairment

There are two types of impairment following an accident and a distinction is made between them. These are technical impairment and mercantile impairment.

Technical impairment:

A technical depreciation means that the vehicle can no longer be restored to its original technical condition. There remains visible damage that differs from the previous condition.

Despite repair, this damage cannot be repaired. This includes, for example, damage such as paint differences or body damage that cannot be completely repaired.

As a result of these deficiencies, the vehicle is objectively lower than before the accident.

Mercantile impairment:

The mercantile depreciation, on the other hand, has nothing to do with the technical condition of the vehicle. This is about the loss of value on the used car market that is caused simply by the fact that the car has already had an accident.

On the used car market, an accident-free vehicle is worth more than one that has been involved in an accident before, even if the technical condition does not differ.

The mercantile depreciation following an accident therefore means that you get less for the completely repaired vehicle.

Factors influencing the determination

The amount of the impairment following an accident depends on various factors. The following aspects play a role:

Age of vehicle: The newer a vehicle is, the higher the depreciation following an accident, as the condition was previously higher. Older cars may not be depreciated at all.

Mileage: It is similar with the mileage. The fewer kilometers, the better the condition was before the accident and, accordingly, the depreciation after the accident is higher.

Type of damage: Even if the damage is higher, the depreciation is higher. Minor damage such as scratches can be easily repaired, but a more comprehensive repair also results in a higher depreciation.

market: The market situation and demand for the damaged car model also have an influence on the amount of impairment following an accident.

Calculation of impairment

Calculating the depreciation following an accident is a complex process. There are officially recognized calculation models with which you can calculate the impairment.

These models serve as a guide when evaluating the vehicle and must be individually adapted. You can find out which models are available and how they work here:

Hamburger model

The Hamburg model is one of the oldest and most frequently used calculation models. The model is very common in Germany and is used by many automotive experts. It is a calculation method to calculate mercantile impairment.

First, the replacement value of the vehicle and the repair costs are determined. These are then set in relation to each other and a percentage can be derived from this. The higher the repair costs, the higher the percentage for the depreciation.

The advantage of this method is that it is very easy to use and is based on clear values. The disadvantage of this is that aspects such as the type of vehicle or the current market are not taken into account.

Table by Ruhkopf Sahm

The Ruhkopf and Sahm table is also an old, proven method that was established by two experts in the 1960s.

This is a table that takes into account certain factors. This includes replacement value, vehicle age, mileage and repair costs.

First, the vehicle value and repair costs are determined and on the basis of this, the car is classified in a suitable category.

The advantage here is that the table has a clear structure and it is therefore easy to determine the impairment. The disadvantage, however, is that the table is designed for average cases and cannot adequately assess special cases such as particularly complex accident claims or luxury cars.

special cases

There are also special cases, for example in the case of vehicles with particularly high mileage before the accident, where no mercantile depreciation is recognized. Since the value was already so low before the accident, this is referred to as excluding the depreciation.

Even in the event of a traffic accident involving a luxury car, there are special details of the depreciation following an accident. Here, even the smallest accidental damage can significantly influence the figure. Here, it makes sense to call in a car appraiser who specializes specifically in luxury cars.

The problem is similar with classic cars. Any type of repair reduces the value of collectibles. The repair should definitely be carried out by a specialized mechanic and when evaluating the depreciation, you should also hire a motor vehicle expert who specializes in classic cars.

In complicated cases, it is advisable to seek legal help from a lawyer who is familiar with traffic law and can also represent you in court in case of doubt.

Who pays for the impairment?

In the event of a decrease in value following an accident, the owner of the damaged car will incur costs, as it is now worth less. Does the owner of the vehicle now have to bear the costs? Who covers which costs and when is explained in the following section.

Car insurance for the other party involved in the accident

In the event of an accident for which you are not responsible, the motor liability insurance of the person responsible for the accident covers the costs of the depreciation, provided that the question of guilt has been clarified.

The insurer not only covers the costs of the appraisal, repair and rental costs of a replacement car, but also the resulting decrease in value.

This applies to both mercantile and technical depreciation.

Your own insurance

If you yourself are the person responsible for the accident, then your own liability does not cover the costs of the damage following the accident. In this case, you can only rely on comprehensive insurance if you have taken out one. Fully comprehensive insurance usually covers the repair costs, but not always the depreciation.

Since contracts with fully comprehensive insurance are very individual, no general statement can be made about the assumption of costs. Therefore, check your contract thoroughly to know what your insurance covers.

Influence of repair

The repair has a major impact on the depreciation of a car. Find out what role she plays here.

quality

The quality of repair following a car accident is very important for depreciation. If the damage is professionally repaired and has no defects, the depreciation is usually reduced. If the damage caused by the crash to the car is improperly repaired, this may result in a higher loss of value.

Repair costs as an indicator

Repair costs are the basis for the depreciation. It is a good indicator and helps to determine the depreciation of the car in the various calculation models. As a rule, you can say that the higher the repair costs, the higher the depreciation following the accident damage.

Original parts vs. replica parts

The role of the parts that are used also plays a role. If the manufacturer's original parts are used, the depreciation is lower than when replica parts are used. Buyers have more confidence in the original part and are therefore willing to pay more for a used car with original parts.

Legal basis

As an injured party, you are entitled to compensation. You can find out how they can enforce their law in the following section.

Claim of the injured party

You are entitled to compensation for the decrease in value from the opposing insurance company. The insurer of the person responsible for the accident must cover the costs of the impairment, both in the case of mercantile and technical impairment. The prerequisite for this is proof of the damage by means of a damage report.

Role of the motor vehicle report

The motor vehicle damage report is the basis for calculating the depreciation. that Accident report is carried out by a motor vehicle expert and a lot of information is recorded. This includes the value of the accident vehicle before the crash, the extent of the damage and repair costs. Since these values are all required for the calculation method, the report provides the basis for the impairment.

Tips: Keep the value reduction low

In order to avoid a sharp decline in value, the following aspects should be considered.

Choose the right workshop

As already mentioned, high-quality and professional repair is decisive for the amount of depreciation. When choosing a workshop, make sure that you use original parts, have qualified employees and have good reviews. In this way, you can keep the impairment as low as possible.

Car appraiser

It is advisable to hire a motor vehicle expert so that you can better assess the damage and the depreciation. In addition, the report is regarded as evidence by the insurer and is therefore the basis for settling claims.

Repair documentation

Make sure that you keep all documents and evidence of the repair of the car so that you can prove that the vehicle has been professionally repaired. In many cases, this helps build a buyer's trust.

conclusion

Depreciation following an accident is a big part of settling claims. It takes into account the loss of value of the accident vehicle even if the damage has been completely repaired.

With the help of an accident report, the price of the impairment can be determined so that the injured party receives a correspondingly high amount of compensation. In the event of a resale of the car, the owner then no longer makes a loss because he was previously compensated for it.

There are two types of impairment. The technical depreciation is actual damage to the car that can still be seen after the repair. Mercantile depreciation is about the fact that the vehicles are worth less than used cars simply because they had an accident.

FAQ

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