Brand New Car Accident and Not at Fault? Here’s What to Do Next

TL;DR: If you were in an accident with your brand new car and were not at fault, your immediate actions are to ensure everyone’s safety, call 911 to get a police report, and thoroughly document the scene with photos. After reporting the crash to both your insurer and the at-fault driver’s insurance company, your most critical financial step is to pursue a diminished value claim. This claim is designed to compensate you for the significant drop in your new car’s resale value caused by the accident history. Do not accept a quick settlement from the other driver’s insurer, as it will likely not cover this loss. To protect your investment and your rights, you should consult with a car accident attorney who can manage the claims process and fight for full compensation.

Key Highlights

• Prioritize Safety First: Move to a safe area, check for injuries, and call 911 for police and medical assistance.
• Document Extensively: Use your phone to take photos and videos of vehicle damage, the accident scene, and the other driver’s license, registration, and insurance card.
• Report to Insurers: Notify your insurance company of the incident and file a third-party claim directly with the at-fault driver’s insurer.
• Get a Medical Check-Up: See a doctor as soon as possible, even for minor discomfort, as some injuries have delayed symptoms.
• Demand a Diminished Value Claim: This is essential for a new car. It covers the loss in market value your vehicle suffers simply by having an accident on its record.
• Choose Your Own Repair Shop: You have the right to select a high-quality collision center and should insist on Original Equipment Manufacturer (OEM) parts for repairs.
• Consult a Car Accident Attorney: Speak with a lawyer before agreeing to any settlement to ensure you are compensated for all your losses, including diminished value, medical bills, and lost wages.

A collision is an unwelcome and jarring event for any driver. According to the National Highway Traffic Safety Administration (NHTSA), millions of property-damage-only crashes occur each year, forming the largest category of police-reported traffic incidents. While any accident is disruptive, a crash involving a brand new vehicle introduces a unique and often overlooked financial problem. The excitement of owning a new car, with its pristine condition and high market value, can be instantly compromised, leaving the owner with more than just repair costs to consider.

When you are not the responsible party in an accident, the at-fault driver’s insurance is liable for your damages. This includes the cost of repairs, medical expenses, and other related losses. However, for a new car, the most significant financial damage often isn’t the bent fender or scratched paint; it’s the permanent stain on the vehicle’s history report. This recorded event creates a substantial loss known as “diminished value,” a concept recognized in most states. The moment a vehicle has an accident on its record, its potential resale price plummets, a loss that standard repair payments do not cover.

The First 60 Minutes: Critical Steps at the Accident Scene

What you do in the first hour after a collision can have the biggest impact on the outcome of your insurance claim and any potential legal action. A calm and methodical approach will help you protect your health and build a strong foundation for your case.

1. Ensure Safety and Call for Help

Your first priority is the well-being of yourself, your passengers, and others involved.

• Check for Injuries: Assess yourself and your passengers for any immediate injuries. Even if you feel fine, the shock and adrenaline can mask pain.
• Move to Safety: If the vehicles are in a dangerous position, such as in the middle of a busy road, and they are drivable, move them to the shoulder or a nearby safe location. If moving the cars is unsafe or would risk further injury, leave them where they are, turn on your hazard lights, and get yourself and your passengers to a safe spot away from traffic.
• Call 911: Report the accident to the police immediately. A police report is an invaluable piece of evidence. When the officer arrives, they will document the scene, gather statements, and often make a preliminary determination of fault. This official report becomes a cornerstone of your claim with the at-fault driver’s insurance company. Request medical assistance if anyone is injured.

2. The Art of Evidence Collection

The evidence you gather at the scene is raw, unbiased, and incredibly powerful. The insurance adjuster was not there, so your photos and notes create the story for them.

• Take Abundant Photos: Use your smartphone to capture everything. Take wide shots of the entire scene, including traffic signs, signals, and road conditions. Then, take close-up photos of the damage to all vehicles involved from multiple angles. Photograph the other car’s license plate.
• Record a Video: A short video can be even more effective. Slowly walk around the scene, narrating what you see. Capture the positions of the cars, the damage, and the surrounding environment. This can provide context that still photos might miss.
• Look for Witnesses: Independent witnesses are highly credible. If anyone saw the accident, politely ask for their name and phone number. Their account can be crucial if the other driver changes their story later.

3. Interacting with the Other Driver

Your conversation with the at-fault driver should be brief and factual. Emotions can run high, but it is vital to remain calm and avoid certain statements.

• Do Not Apologize or Admit Fault: An apology, even as a simple courtesy like “I’m so sorry this happened,” can be misinterpreted by an insurance company as an admission of guilt. Do not discuss who was at fault.
• Exchange Essential Information: You are legally required to exchange information. Get the other driver’s:
  • Full name and contact information
  • Insurance company name and policy number
  • Driver’s license number
  • Vehicle license plate number
• Use Your Phone: The easiest way to ensure accuracy is to take a clear photo of their driver’s license, insurance card, and registration. This prevents miswritten information and provides concrete proof.

Dealing with Insurance Companies: Your First Reports

Once you have left the scene and addressed any immediate medical needs, the next step is to initiate the claims process. How you communicate with the insurance companies is just as important as the evidence you collected.

4. Notifying Your Own Insurance Company

Even though you were not at fault, you should promptly report the accident to your own insurance provider. Most policies have a clause that requires you to report any incident in a timely manner.

• Why It’s Necessary: Reporting the crash protects you. If the at-fault driver is uninsured or underinsured, you may need to use your own Uninsured/Underinsured Motorist (UM/UIM) coverage. You might also decide to use your own collision coverage to get your car repaired faster, especially if the other insurer is slow to accept liability. In that case, your insurance company would pay for your repairs (minus your deductible) and then seek reimbursement from the at-fault party’s insurer, a process called subrogation.
• What to Say: When you call, stick to the facts. Provide the date, time, and location of the incident, the other driver’s information, and the police report number. Do not offer opinions or speculate on the details.

5. Filing a Third-Party Claim with the At-Fault Insurer

This is the claim that will ultimately pay for your damages. You will be dealing with a claims adjuster who works for the other driver’s insurance company. It is critical to remember that this adjuster’s primary goal is to save their company money, not to give you the highest possible settlement.

• Initiating the Claim: You can typically file the claim online or by phone. You will need to provide all the information you gathered at the scene.
• The Adjuster’s Role: The adjuster will investigate the claim, review the police report, and speak with their insured driver. They will then determine liability and assess the value of your damages. Be polite but firm in all your communications. Keep a log of every conversation, including the date, time, and name of the person you spoke with.

6. The Dangers of a Recorded Statement

The at-fault insurer will almost certainly ask you to provide a recorded statement about the accident. You are generally not obligated to provide one, and it is often in your best interest to politely decline until you have spoken with an attorney.

Adjusters are trained to ask questions in a way that might get you to say something that could be used to assign partial fault to you. For example, they might ask, “Were you in a hurry?” or “Did you see the other car at all before the impact?” An innocent answer can be twisted to reduce the amount the insurance company has to pay. If you have any injuries, providing a recorded statement is especially risky.

The Elephant in the Room: Understanding and Proving Diminished Value

For the owner of a new car, the concept of diminished value is the most important part of the property damage claim. Standard repairs restore the car’s function, but they do not restore its lost market value. A diminished value claim is how you recover that financial loss.

What Exactly is Diminished Value?

Diminished value is the reduction in a vehicle’s resale value after it has been damaged and repaired. Even if the repairs are perfect and the car looks and drives like new, it now has an accident history that will appear on services like CarFax and AutoCheck. A knowledgeable buyer will not pay the same price for a car that has been in an accident compared to one with a clean history.

There are three main types of diminished value:

1. Inherent Diminished Value: This is the most common and widely accepted type. It is the automatic loss of value that results from the vehicle having a stigma of being in a wreck. This loss exists even with flawless repairs.
2. Immediate Diminished Value: This is the difference in the car’s value right before the accident and immediately after, before any repairs have been made. It is less commonly used in claims.
3. Repair-Related Diminished Value: This is the loss of value due to incomplete or poor-quality repairs. This can include mismatched paint, improper panel alignment, or the use of non-original parts.

Why This Claim is Crucial for a Brand New Car

The newer a vehicle is, the more it stands to lose from an accident history. A 10-year-old car with 150,000 miles won’t see a huge drop in value from a minor fender bender. However, a brand new $60,000 truck or SUV could lose thousands of dollars in an instant.

Consider this example: A new luxury sedan worth $55,000 is rear-ended, causing $8,000 in damage. The repairs are done perfectly. However, the car now has a moderate collision on its record. A potential buyer two years later sees two identical cars for sale. One has a clean history, and one has a reported accident. The buyer will either choose the one with the clean history or demand a significant discount on the one that was wrecked. That discount is your diminished value. For a new car, this loss can easily be 10% to 25% of its pre-accident value.

How to Prove and Calculate Your Claim

Insurance companies will not voluntarily offer to pay for diminished value. You must demand it and prove your loss.

• Step 1: Hire a Professional Appraiser: The most effective way to prove your claim is to hire an independent, certified appraiser who specializes in diminished value. Do not rely on formulas from the insurance company, which are designed to produce a low number. A professional appraiser will conduct a thorough analysis of your vehicle, the repairs, and the market conditions.
• Step 2: Get a Comprehensive Appraisal Report: The appraiser will provide a detailed report that serves as your expert evidence. This report will compare your vehicle to others on the market, cite industry data, and provide a credible, defensible calculation of your car’s lost value.
• Step 3: Submit a Formal Demand: You or your attorney will submit the appraisal report to the at-fault insurance company along with a formal demand letter. This letter will outline the facts of the case, establish the insurer’s liability, and demand payment for the amount specified in the appraisal. Be prepared for the insurer to push back, but with a professional appraisal, you have the leverage you need to negotiate effectively.

Getting Your New Car Repaired the Right Way

After an accident, you want your new car restored to its pre-loss condition. This requires using a reputable repair shop and ensuring they use the right parts. The insurance company may try to steer you in a direction that benefits them, not you.

Your Right to Choose the Repair Shop

The at-fault insurer will likely recommend one of their “preferred” or “direct repair program” (DRP) shops. While these shops may be convenient, you are under no obligation to use them.

• Potential Conflicts of Interest: DRP shops have a contract with the insurance company. To maintain that relationship, they may feel pressure to keep costs down by cutting corners, using cheaper parts, or rushing the job.
• Your Right to Choose: You have the legal right to have your vehicle repaired at any shop of your choice. It is best to select a dealership-certified collision center or a highly-rated independent shop that has experience working on your make and model and is known for quality workmanship.

Insisting on OEM Parts (Original Equipment Manufacturer)

For a brand new car, using the right parts is non-negotiable. The debate is between OEM parts and aftermarket parts.

• OEM Parts: These are new parts made by your car’s manufacturer. They are identical to the parts your car was built with, ensuring proper fit, function, safety, and warranty compliance.
• Aftermarket Parts: These are generic parts made by third-party companies. They may be cheaper, but their quality, fit, and safety standards can be inconsistent. Using them could potentially void your new car’s warranty.

You should insist that the repair estimate specifies the use of OEM parts only. Insurance companies often try to mandate the use of cheaper aftermarket parts to save money. If they refuse, you or your attorney may need to cite state regulations or your vehicle’s warranty requirements to force the issue.

Reviewing the Repair Estimate and Final Work

Before any work begins, get a detailed, itemized estimate from the repair shop. Review it carefully to ensure it includes all necessary repairs and specifies the use of OEM parts. Once the repairs are complete, inspect your vehicle thoroughly before you drive it off the lot.

• Check for paint match in different lighting conditions.
• Examine panel gaps to ensure they are even and consistent.
• Test all electronics and make sure no warning lights are on.
• Take it for a test drive to listen for any unusual noises.

Do not sign the final paperwork or authorize the final payment until you are completely satisfied with the quality of the work.

Don’t Ignore Your Health: Medical Care and Documentation

While the focus for a new car is often on the property damage, your health is always the top priority. Even low-speed collisions can cause serious injuries that may not be immediately apparent.

The Importance of a Prompt Medical Evaluation

Adrenaline is a powerful chemical that can mask pain and injury in the immediate moments following a crash. You might feel “shaken up” but otherwise fine, only to wake up the next day with severe neck pain, back pain, or a headache.

• Delayed Symptoms: Injuries like whiplash, concussions, and other soft tissue damage often have delayed symptoms.
• Protect Your Claim: Seeking a medical evaluation promptly creates a documented link between the accident and your injuries. If you wait weeks to see a doctor, the insurance company will argue that your injuries must have been caused by something else.

Documenting Every Medical Step

Just as you documented the accident scene, you must document your medical journey.

• Keep a File: Create a folder for all medical-related paperwork. This includes doctor’s notes, hospital records, physical therapy reports, and bills. Also, keep receipts for any prescriptions or medical devices you need to purchase.
• Maintain a Pain Journal: Keep a simple daily or weekly journal. Note your pain levels, any physical limitations you are experiencing, and how the injuries are affecting your ability to work, sleep, and perform daily activities. This personal account can be powerful evidence in a personal injury claim.

How Medical Bills Are Paid

Understanding the payment process can reduce stress. Initially, your medical bills will not be paid by the at-fault driver’s insurance. That payment comes much later as part of a final settlement. In the meantime, you will use other coverage.

• PIP or MedPay: If you have Personal Injury Protection (PIP) or Medical Payments (MedPay) coverage on your own auto policy, it will be the primary source for paying your initial medical bills, regardless of fault.
• Health Insurance: After your PIP or MedPay is exhausted, your personal health insurance will cover your treatment. Your health insurer will likely seek reimbursement from the at-fault party’s insurer later.

When to Hire a Car Accident Attorney

Many people believe that if they are clearly not at fault, they do not need a car accident attorney. However, when a brand new car and any level of injury are involved, an attorney’s guidance can be invaluable. The insurance company has a team of professionals working to protect its interests; you deserve to have an expert protecting yours.

Red Flags: Signs You Need Legal Help

You should strongly consider consulting an attorney if you encounter any of the following situations:

• The at-fault driver’s insurer is disputing liability or trying to blame you.
• You have sustained any physical injury, no matter how minor it seems.
• The insurance company makes a very low settlement offer for your vehicle’s repairs or total loss value.
• The adjuster is refusing to acknowledge or properly pay your diminished value claim.
• They are pressuring you to sign a release or accept a check quickly.
• The claims process is being delayed, or the adjuster is unresponsive.

The Role of an Attorney in a Not-at-Fault Claim

A skilled car accident attorney takes over the entire process, allowing you to focus on your recovery.

• They Manage All Communications: Your lawyer will handle all phone calls, emails, and paperwork with the insurance companies.
• They Build a Strong Case: They will gather all necessary evidence, including the police report, medical records, and expert reports like a diminished value appraisal.
• They Negotiate for Full Compensation: An attorney understands the true value of a claim. They will fight for every dollar you are owed for property damage, diminished value, medical bills, future medical needs, lost wages, and pain and suffering.

Understanding Contingency Fees

The cost of hiring a personal injury lawyer should not be a concern. Most personal injury attorneys work on a contingency fee basis. This means they do not charge any upfront fees. Their payment is a percentage of the settlement or court award they secure for you. If they are unable to recover any money for you, you owe them nothing. This arrangement makes expert legal representation accessible to everyone, regardless of their financial situation.

Securing Your Financial Recovery

Being in a car accident when you’re not at fault is frustrating, but when it involves your brand new car, the stakes are higher. The financial loss from diminished value is real, substantial, and often ignored by insurance companies. By taking methodical steps at the scene, communicating carefully with insurers, and being prepared to prove your losses, you can protect your investment. Remember that the at-fault driver’s insurance adjuster is trained to minimize payouts. Their initial offers for repairs and value are often just a starting point for negotiations.

The key takeaways are clear: document everything, seek immediate medical care, and do not underestimate the financial impact of diminished value. You have the right to choose your own repair shop and demand the use of original manufacturer parts to restore your vehicle properly. Most importantly, you must be your own best advocate in this process. The path to full compensation requires diligence and a refusal to accept less than what you are rightfully owed.

Don’t let an insurance adjuster dictate the value of your new car or your health. If you are facing resistance on your diminished value claim, if your injuries are causing you pain, or if the process feels too complex, the next crucial step is to speak with an experienced car accident attorney. A no-cost consultation can provide clarity on your rights and equip you with the professional support needed to secure the full compensation you deserve. Contact us today for free case evaluation.