Can I Claim Depreciation Costs for a Rear-End Collision?
2 Answers
Compensation for car accidents generally does not include depreciation costs. Below is a detailed explanation regarding rear-end collisions: 1. Liability Issues: If your car is rear-ended, the other party is fully responsible. You can directly claim compensation from the other party's insurance company using the accident responsibility determination certificate issued by the traffic police, along with the repair cost invoices. This falls under the property loss compensation of compulsory traffic insurance. If both parties cannot reach an agreement on compensation, you can directly sue the other party and their insurance company. 2. Compensation the Other Party Should Provide: In the event of a rear-end collision where the other party is fully at fault, besides claiming repair costs, you can also request compensation for vehicle depreciation and loss of income. For these additional affected expenses, you can demand compensation from the other party.
Last time my car got rear-ended, I was pretty nervous and later specifically looked into the matter of depreciation costs. Simply put, depreciation cost refers to the loss in value of the car after an accident—for example, a new car suddenly losing tens of thousands in value. But can you claim it back? During insurance claims, most companies only cover repair costs and exclude depreciation. You can try negotiating with the other party or hiring a lawyer to prove the accident caused a drop in value, such as obtaining a professional appraisal report showing the car’s market price has fallen. However, such claims are complicated and have a low success rate, especially if the car is older—the other party’s insurance might outright refuse. My advice is to first repair the car to ensure safety, then use the traffic police accident report and documented evidence to pursue compensation, but don’t get your hopes up too much. In reality, most people settle for repair compensation and leave it at that.
