“Car Depreciation After an Accident” Why Insurance Companies Refuse to Pay, and Why You Need a Lawyer to Get Your Rights Back?

When a car accident occurs, most vehicle owners face not only physical or property damage but also the long and often frustrating process of claiming compensation from their insurance company.
One of the most debated issues is “car depreciation” after repairs does the insurance company have to pay for it?The answer is yes it can be legally claimed.
However, in reality, insurance companies often refuse to pay.
As a result, many victims have to rely on experienced insurance lawyers to claim their rightful compensation.
That’s because “car depreciation” isn’t something anyone can simply demand; it requires legal knowledge, technical evidence, and professional strategies to prove the true loss in value.

What Is “Depreciation”?

Depreciation refers to the loss in value of a property after an accident.
Even if a car has been perfectly repaired, its market value is no longer the same.
In the used car market, a vehicle that has been in an accident always sells for less than one that hasn’t.

For example, if your car was worth 1,000,000 THB before an accident, and after repair you can only sell it for 900,000 THB,
The 100,000 THB difference represents the “depreciation value” , a real financial loss that you have the right to claim from the insurer or the at-fault party under Thai law.

How to Calculate “Car Depreciation” No One Wants a Previously Damaged Car

Even after a full repair, a damaged car will never be the same. Its value drops that drop is what we call “depreciation.”
According to Lawyer Arm, there are three main methods to assess car depreciation:

Method 1 – Based on Real-Life Sales

A client who ran a used car business got into an accident while driving to meet a buyer.
The customer refused to buy the car after learning it had been in an accident, saying, “No one wants a crashed car.”
Originally priced at 500,000 THB, the buyer offered only 100,000 THB.
👉 The 400,000 THB difference was the actual depreciation caused by the accident.

Method 2 – Appraisal from Used-Car Dealers

Sometimes, the victim can ask car dealers to appraise the price difference.
For example, a dealer might say that a certain model usually sells for 500,000 THB, but if it’s been in an accident, they would only buy it for 200,000 THB.
👉 The 300,000 THB difference also represents the depreciation value.

Method 3 – Assessment by Certified Experts or Mechanics

If there’s no real transaction, an expert mechanic or auto body specialist can assess the car’s post-repair value based on comparable models in the market.
👉 This method is fair, transparent, and technically verifiable.

Key Points from Lawyer Arm

• Claiming depreciation is a legal right because an accident reduces your vehicle’s market value.
• Insurers must not advise victims to lie to car dealers that the vehicle has never been in an accident that’s unethical.
• In reality, no one wants to buy a heavily damaged vehicle, and resale value inevitably drops.

Depreciation is therefore a real and provable loss, and victims are entitled to compensation under the law.

Why Do Insurance Companies Refuse to Pay Depreciation?

Even though depreciation is a real loss, insurance companies often deny the claim using reasons such as:

1.The repaired car is “as good as new.”

2.There’s no market evidence supporting the price drop.

3.The insurance policy doesn’t explicitly mention depreciation coverage.

But legally, depreciation does not need to be stated in the policy.
If you can prove the loss in value, the company must compensate under Civil and Commercial Code Section 420 (tort law).

 Why Should Have a Lawyer Handle the Claim?

While victims can technically file claims themselves, proving depreciation requires strong, technical evidence, such as:

• Pre- and post-repair valuation reports
• Expert witness opinions
• Repair receipts and documents
• Photographs of the damaged car

A lawyer’s role is crucial in:
✅ Assessing the true financial loss
✅ Preparing admissible evidence for court
✅ Referencing previous court rulings on depreciation to strengthen your case

Simply put:
If the insurance company has a legal team before the crash even happens,
then you should also have your own lawyer from the moment the crash occurs.

Depreciation Is Real But You Must Know How to Claim It

Car depreciation is not a bonus or a favor from the insurer, it’s a real, lawful damage you deserve to recover.
Unfortunately, many people lose this right because they don’t know how to claim it properly.

If your insurer refuses to pay for car depreciation, don’t stay silent.
Consult a lawyer immediately to ensure your rights are fully protected.

 Wongsakorn Law Office, led by Lawyer Arm, specializes in car insurance cases including repair costs, loss of use, and depreciation claims.
We’re ready to fight for your rightful compensation in every step of the process.
Consult a lawyer today → Contact Us or call 062-195-1661.