Can You Claim Depreciation Compensation for a New Car Involved in a Traffic Accident?
3 Answers
Currently, the "Civil Code" only provides principled regulations regarding depreciation compensation. As long as a car owner is involved in a collision, they can file a claim for depreciation compensation. Traffic accident handling process: On-site investigation: After a traffic accident occurs, if the parties involved have no disputes about the facts and causes, they can immediately leave the scene and negotiate compensation matters on their own. If they do not leave the scene immediately, they must protect the scene and promptly report it to the public security authorities. The on-duty police officer will conduct an on-site investigation. Liability determination: After ascertaining the basic facts of the accident and collecting sufficient evidence, the liability determination will be made strictly in accordance with the prescribed time and in accordance with the law. All parties involved will be summoned to clarify the basic facts of the accident and the reasons and basis for the liability determination. Penalty: After the liability determination takes legal effect, the penalty ruling will be announced to the responsible party. The parties involved will be informed of their right to apply for administrative reconsideration and the legal time limit. Relevant procedures for the penalty will be processed, and the penalty will be executed. Compensation mediation: Within the prescribed time, the parties involved or their agents will be asked whether they are willing to engage in compensation mediation. If they are willing, the mediation can be conducted up to two times; if they are unwilling, the parties involved will be informed that they can file a civil lawsuit with the People's Court within the legal time limit.
I've handled quite a few traffic accident claims before. In theory, you can claim depreciation costs for a new car after an accident, but it's not easy in practice. Under China's legal framework, the at-fault party is generally required to compensate for direct losses such as repair costs and residual value, but depreciation is considered an indirect loss. Courts may support such claims in some rulings, especially for high-end new cars or serious accidents, but you must provide a professional appraisal report proving the specific depreciation amount. If you haven't purchased corresponding insurance, insurers usually won't cover this proactively. My advice is to first gather accident evidence and vehicle inspection reports, then consult a lawyer to go through legal procedures. Success depends on the specific case and strength of evidence. This process is quite time-consuming, and many people eventually give up because proving actual losses is difficult. So don't rush when something happens; take it step by step calmly.
As someone frequently involved in claims, diminished value is a gray area after an accident. It's common knowledge that a new car's value drops after being repaired post-crash, but most insurance companies' claim policies only cover direct repair costs and partial write-off compensation. To claim additional diminished value, owners usually need to actively prove their loss, such as hiring a third-party agency to assess the difference in market value before and after repairs. However, the success rate for such claims is low, with many cases stuck due to insufficient evidence or judges ruling it's not mandatory compensation. In daily practice, I see owners trying to resolve disputes through negotiation or small claims court. Overall, being prepared is better than not—understanding relevant policies in advance can save you detours.
