Does a car depreciate if it has been in an accident?

[DeMia]

Yes, there is an item in vehicle compensation called "compensation for vehicle depreciation due to damage," but this compensation is not covered by insurance. Both parties can resolve it on their own, and if an appeal is filed, the court will support it. More extended information is as follows: 1. Overview: Vehicle depreciation is a financial manifestation of vehicle investment recovery, where a certain amount of funds is allocated annually to update vehicles and maintain transportation reproduction. Vehicle depreciation cannot reflect the national economy's investment in transportation vehicles; what can effectively reflect the economic price of vehicle depreciation is the vehicle's capital recovery cost. 2. Others: The adjustment method for vehicle depreciation is to replace the financial depreciation cost with the vehicle's capital recovery cost (under the social discount rate). The vehicle capital recovery cost equals the vehicle's economic price (excluding purchase surcharges) multiplied by the annual capital recovery coefficient, then divided by the average annual transportation turnover per vehicle.