I was in a wreck yesterday that was not my fault at all (I had 2 witnesses, and the police issued the at-fault driver a citation). I already filed a claim with my insurance company, as well as the at-fault party’s insurance company. My vehicle was towed from the scene of the accident, because it was not drivable (flat tire on one side, and metal hanging off the car), and is being taken to a Auto-Body shop approved by my insurance company. My understanding is that the car will be repaired to it’s pre-accident condition, and I know that I should also confirm that none of this will bedone with after market parts. My main concern is that the collision will be attached to my VIN Number, and thus accessible via CarFax reports….so if I went to trade-in my car next year, the value would be substantially diminished because my vehicle was in a wreck. How do I go about collecting damages from the at-fault party or their insurance company, for the diminished value associated with the wreck? Will I need to hire an attorney, or is this something by insurance company can include in the settlement from the other insurance company? Thanks in advance for any guidance and recommendations you can give to me!!

Most insurance companies do not report to Car Fax.

Unless you are having your car repaired at a dealership, the accident probably won’t show up on Car Fax.

It is my understanding, In NC – as long as collision damage is less than 25% of the value of the car you don’t have to disclose it. (Double check this with your insurance adjuster or the DMV)

Your insurance policy gives your insurance company the right to use after market and used parts. If you want all OEM, you may have to pay the difference yourself.

More importantly, In NC – diminished value is not recoverable under first party coverage. Meaning – Diminished Value is not covered under Collision Coverage. Your insurance company will not pay it to you. Since they are not paying you for diminished value – your insurance company does not subrogate for that. You have to pursue the at fault drivers insurance company. You don’t need to hire an attorney to do it. Just call up the other company and speak to the adjuster handling the claim. They can tell you the process.

Additionally, just because your car was in a wreck does not mean it automatically losses value. In a diminished value claim they will look at the year/make/model of the car, the area damaged and the quality of the repairs.