what is a fair price for depreciation after an accident?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Feb 16, 2012

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Insurance Question from Rockingham, NC

Asked on 02/16/2012

what is a fair price for depreciation after an accident? 2005 Titan king cab 4x4 fully loaded, after market wheels and supreme sound system, dvd player, 55K original miles. Insurance damage was $7,300. Blue book value $16,377.

Answer given on February 19, 2012

If the car was damaged due to an accident, and the value of the car is substantially higher, then the insurance company will pay for the repairs to the vehicle. The after market wheels, if damaged, will be covered for repairs if you can prove the value of them. The sound system too should be covered.If the car was vandalized, then the insurance company may depreciate the property that was damaged. Depending upon when the stereo system was installed, there could be some depreciation. The wheels most likely will not be depreciated.You should talk to the adjuster and see what the initial offer is for the damages to the vehicle. The depreciation is usually only taken on aftermarket property, and not factory installed. Many insurance companies will not take depreciation on property that was properly installed in the vehicle, even if it was aftermarket, but simply pay to replace the damaged or stolen items.

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