Car depreciation after an accident - a claim against the insurer that few people know about
Having your car damaged in a traffic accident is not a pleasant experience. Fortunately, if the damage is limited to property, compulsory motor third party liability insurance usually saves you from financial loss. However, according to lawyers, not everyone is aware that not only the cost of repairing the car, but also the loss of its market value, can be claimed from the insurance company.
According to Eimantas Čepas, an attorney at AVOCAD, the amount of damage to a car in a traffic accident is usually understood as the cost of repairs. "However, when buying or selling a car, a lot of attention is paid to whether or not the car has been involved in an accident in the past and whether or not it has been cleaned up, and if the accident is confirmed, the aim is to negotiate the price of the car," the lawyer points out.
Therefore, according to Eimantas Čeps, it should not be forgotten that there is another form of damage - the loss of the car's market value due to the damage sustained in the accident. "And this is not just the negotiating position of the seller or buyer of the car, but the amount clearly determined in accordance with the criteria laid down by law," the lawyer stresses.
According to the legislation in force in Lithuania, loss in marketable value is defined as the irreversible reduction in the value of a vehicle due to repairs, painting or unrepaired damage (when parts of the vehicle are technologically repaired to restore their functional characteristics, where the technological process of repair may affect the physical, chemical, aesthetic condition or service life of the item), including the change in the vehicle's history as a result of an event, compared to the vehicle's value before the damage.
As with ordinary damages, the loss of resale value must be covered by the perpetrator's liability insurance. "Unfortunately, there is no clear indication in the existing legal framework that the victim of a traffic accident has the right to claim from the insurer also for the loss of market value", notes AVOCAD's lawyer.
He says that, taking advantage of the lack of information, not all insurance companies offer to compensate the victim for the loss of the car's trade value due to the repair work, in addition to the usual compensation. "If they do offer compensation for loss of value, the amount offered is not always calculated objectively. Therefore, even if the insurer's offer is accepted, it would be worthwhile to have an independent appraiser's report, as the amount of compensation for the loss of marketable value can be quite significant and can be calculated in thousands of euros," notes Čepas.
However, according to the lawyer, it should be noted that loss of marketable value is calculated for vehicles up to 5 years after the first registration. "As this compensation is calculated for relatively new cars, which means that the value of the cars is correspondingly higher, the amount of compensation can often be quite significant", the lawyer notes.
According to the current legal framework, the amount of damage caused to property in a traffic accident is determined by the responsible insurer on the basis of reports by authorised persons and property valuation reports, documents proving the circumstances, the fact and the amount of the damage, photographs and video recordings.
The Supreme Court of Lithuania emphasises the insurer's duty to assess all documents submitted to it and to evaluate all circumstances, including the documents submitted by the injured third party to prove the amount of the damage, in order to determine the amount of the damage in such a way that the injured party is fully compensated for the damage, to the extent permitted by the rules governing compulsory civil liability insurance.
The principle of full compensation requires that, as far as is objectively possible, the damage caused to a person should be determined on an individual rather than standardised basis.In the event of a dispute as to the amount of the insurance benefit between the person claiming the insurance benefit and the insurer who has insured the civil liability of the driver of the vehicle by compulsory insurance, the amount of the insurance benefit must be proved in each individual case.
To sum up, in order to ensure fair compensation after an accident, it is important not only to rely on the insurance company's offer, but also to be vigilant and proactive in defending your rights - not forgetting the possibility of claiming compensation for the loss of the car's marketable value, and, if necessary, to seek the advice of independent experts who can help you to assess the damage in an objective way and make sure that you receive the full amount of compensation you are entitled to.