Will a car that has claimed insurance depreciate in value?
1 Answers
This situation depends on the type of accident for which the insurance was claimed. If it was a major accident requiring cutting or replacing a part of the car, the vehicle will depreciate in value. However, if it was only a minor collision, the depreciation won't be significant. National insurance system is interconnected nationwide: Every insurance claim made on a vehicle is recorded for its lifetime. Therefore, when buying a car, checking the vehicle's claim history is essential to assess its condition. If the car has a high number of claims, regardless of whether they were major accidents, it indicates that the vehicle's condition is likely not very good. As a result, it will depreciate in value, selling for much lower than the market price and being difficult to offload. Vehicle damage insurance: When the insured or an authorized driver causes an accident while driving the insured vehicle, only damages to the vehicle's parts caused by the accident and their replacement can be claimed under vehicle damage insurance. Collisions or overturns (rollovers) that result in damage to the insured vehicle are compensated by the insurance company within reasonable limits. Vehicle damage insurance is specifically for covering losses related to the vehicle itself.
