Is There Depreciation Compensation for New Cars Involved in Traffic Accidents?
2 Answers
No. During an accident, the vehicle's repair costs and reasonable transportation expenses are in line with legal provisions, but depreciation compensation lacks legal basis and is generally not supported by courts. Additional Information: Vehicle depreciation compensation is a financial representation of the recovery of vehicle investment. It involves allocating a certain amount of funds annually to update vehicles and maintain transportation reproduction. Vehicle depreciation compensation does not reflect the national economy's investment in transportation vehicles; what effectively reflects the economic cost of vehicle depreciation is the vehicle's capital recovery cost. The adjustment method for vehicle depreciation compensation 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, divided by the average annual transportation turnover per vehicle.
My new car was involved in a rear-end collision less than three months after purchase. While the insurance company covered the full repair costs, when I later tried to sell it, the accident history immediately devalued the car by tens of thousands. This is called depreciation loss—a real financial hit that insurers typically won’t cover, dismissing it as 'indirect damage' excluded from compulsory traffic insurance. Eager to recover the loss, I researched and learned legal action is key: either negotiate privately with the at-fault party or file a lawsuit for depreciation compensation. My advice? Document the accident scene thoroughly with photos, secure a professional valuation report, and don’t let insurers downplay your claim. New cars suffer glaring depreciation—it’s brutally unfair. Now, I drive with hyper-awareness to avoid distracted driving.
