• I want to consult about a traffic accident in Yaizu/Makinohara
• My car was damaged in an accident. What claims can I make besides repair costs?
• I don't fully understand the breakdown in the settlement proposal from the insurance company

Are you troubled by issues like these in Yaizu, Makinohara, Omaezaki, Fujieda, Shimada, Yoshida Town, or surrounding areas?
Yaizu Sogo Law Office offers a free initial legal consultation regarding traffic accident concerns. There is no obligation to retain our services after the initial consultation. We are also available on weekday evenings and Saturdays. Please feel free to contact us by phone or email.

About the Details of Damages in Property Damage Accidents

Settlement proposals from insurance companies list damage amounts according to categories such as medical expenses and lost income. Understanding what damages can be claimed in a traffic accident is important for comprehending the content of the settlement proposal.

Below, we explain the damages that victims can generally claim in property damage accidents.

Note that property damage cases tend to be "more favorable to insurance companies" compared to personal injury cases. Without properly understanding claimable items, there is a risk of failing to claim damages that should have been received.

① Vehicle Repair Costs

Where repair is reasonable, an appropriate amount equivalent to the repair costs is recognized as damages.

As long as the amount is appropriate, it is possible to claim damages even before the actual repair has been carried out.

Note that if the repair costs exceed the vehicle's current market value plus replacement-related expenses, it is considered an "economic total loss," and the vehicle is treated as a total loss. In that case, the replacement costs described below become the recognized damages.

For example, if repair costs are 1,000,000 yen while the vehicle's current market value plus replacement expenses totals 800,000 yen, it is treated as an economic total loss, and only 800,000 yen can be claimed instead of 1,000,000 yen.

In practice, there are many cases where the market value presented by insurance companies is too low. By preparing proper documentation and negotiating thoroughly, it is often possible to obtain an increased amount.

② Replacement Costs

When a vehicle becomes irreparable due to a traffic accident, replacement costs are recognized as damages in the form of a total loss.

A total loss for a vehicle includes not only cases where repair is physically impossible (physical total loss), but also cases where repair costs exceed the vehicle's current market value plus replacement expenses (economic total loss), and cases where replacement is more reasonable than repair under social norms (social total loss).

Insurance companies may underestimate "economic total loss," and there are cases where higher replacement costs should be recognized. Please be sure to consult an attorney before settling.

③ Vehicle Diminished Value

Even if a vehicle is repaired, defects in appearance or performance may remain, or the accident history may reduce its commercial value. In such cases, the diminished value caused by the accident may be claimed as damages.

This is not recognized for all vehicles. For example, diminished value may be recognized for vehicles with recent initial registration dates, popular models, or high-end imported vehicles.

Even for domestic vehicles, diminished value is often recognized in cases of:

• "low mileage (short time since initial registration)"
• "accidents shortly after new purchase"
• "significant drops in appraisal value"

Insurance companies tend to strongly refuse to acknowledge diminished value, so it is important to prepare photographs, repair estimates, and appraisal reports.

④ Substitute Vehicle Expenses (Rental Car Costs)

If a substitute vehicle (rental car) must be used during the repair or replacement period, substitute vehicle expenses may also be recognized as damages.

For substitute vehicle expenses to be recognized as damages, there must be a demonstrated necessity for using a substitute vehicle, such as it being needed for business/work, or being unable to commute, attend school, or shop without a car.

Furthermore, even if the necessity of using a substitute vehicle is recognized, only the reasonable period required for repair or replacement is allowed, and not the entire period during repair or replacement may be covered.

⑤ Registration Procedure Costs

When a vehicle is a total loss, the replacement costs described in (2) above are recognized as damages. In addition, some costs related to the registration procedures for the replacement vehicle are also recognized as damages.

For example, the automobile acquisition tax for the replacement vehicle, the unexpired portion of the automobile weight tax for the accident vehicle, and vehicle registration fees are recognized as damages. On the other hand, compulsory automobile liability insurance premiums, automobile tax, and automobile weight tax for the replacement vehicle are not recognized as damages.

Although insurance companies are aware that registration procedure costs are recognized as damages, they typically do not include them unless the victim specifically claims them. By properly preparing documentation and making claims/negotiations, the chances of obtaining an increased damage amount are significantly improved.

⑥ Loss of Revenue (Vehicle Downtime Loss)

Lost profits due to being unable to use a vehicle because of a traffic accident can be claimed as "vehicle downtime loss." For example, this may be recognized for commercial vehicles such as taxis or trucks used in the transportation business.

However, if a substitute vehicle is being used, profits are being earned through the substitute vehicle. Therefore, if substitute vehicle expenses under (4) are recognized, vehicle downtime loss is typically not recognized.

For commercial vehicles, documentation such as sales records, operation logs, and utilization rates becomes important. The claimed amount can vary significantly depending on the calculation method.

⑦ Others

In addition, towing fees for the accident vehicle, storage fees, appraisal/estimation costs, scrapping/vehicle disposal fees, cargo loaded on the accident vehicle, and pet injuries may be recognized as damages.

Note that in property damage accidents, unlike personal injury accidents, claims for emotional distress (consolation money) are not recognized.

However, if the case develops into a personal injury accident (treatment is needed, pain appears, etc.), separate claims for consolation money, lost income, and other items become possible. It is important to promptly visit a medical institution and obtain a medical certificate.

⑧ Attorney's Fees and Delay Damages (In Case of Litigation)

If negotiations with the insurance company break down and damages are claimed through litigation, attorney's fees and delay damages can be claimed.

Attorney's fees are typically recognized by the court at 10% of the amount claimed against the at-fault party.

Delay damages can be claimed for the period from the date of the traffic accident to the date of actual receipt of damages, calculated at the statutory interest rate under the Civil Code (5%).

In litigation, part of the attorney's fees can be borne by the at-fault party, and delay damages can also be claimed. This effectively reduces the financial burden on the victim.

Frequently Asked Questions

The Initial Legal Consultation for Traffic Accidents at Yaizu Sogo Law Office Is Free of Charge

Yaizu Sogo Law Office provides a free initial legal consultation regarding traffic accidents.

We handle all traffic accident-related legal matters, regardless of severity or whether they involve property damage or personal injury. If you are feeling stressed by dealings with insurance companies, or if you want to know whether the amount offered by your insurance company is fair, please do not hesitate to consult with us.

Yaizu Sogo Law Office is available not only during regular weekday hours but also on weekday evenings and Saturdays. Please contact us by phone or email to schedule a legal consultation.

Are You Troubled by a Traffic Accident?

• Settlement Offers from Insurance Companies Are Almost Always Low
• The Insurance Company Said They Would Cut Off My Medical Expenses
• Dissatisfied with the Fault Ratio
• When and How to Consult a Lawyer About a Traffic Accident
• What Claims Can Be Made in a Personal Injury Accident?
• What Claims Can Be Made in a Property Damage Accident?
• What You Need to Know About Whiplash
• Traffic Accidents and Health Insurance
• Procedures and Steps to Follow After a Traffic Accident
• Fault Proportions Between a Through-Going Vehicle and a Right-Turning Vehicle at an Intersection
• Diminished Value (Loss of Market Value)
• Amount Claimable from the Other Party When Personal Injury Protection Insurance Was Used Prior to the Claim for Damages Against the Other Party
• Free legal consultation is available for traffic accidents
• Filing a Victim's Claim with Compulsory Automobile Liability Insurance (CALI)
• Lost Wages for Salaried Employees (Wage Earners) in Traffic Accidents
• Understanding a Company's Losses When Employees Are Killed or Injured in a Traffic Accident
• Finding the Court with Jurisdiction over Traffic Accident Lawsuits
• Want to Know Whether You Can Offset the Other Party's Damages Against Your Own in the Same Traffic Accident
• The at-fault party refuses to use their voluntary automobile insurance. What should I do?
• I was seriously injured in a traffic accident in June 2017, before the enforcement of the amended Civil Code (April 1, 2020). Three years have passed (but less than five years) since I completed my treatment. Is the statute of limitations still valid?
• How to Identify a Hit-and-Run Driver from a Vehicle License Plate Number
• Methods of Dispute Resolution in Traffic Accidents
• What You Need to Know About Medical Commuting Transportation Expenses
• How to Find the Insurance Company of the At-Fault Driver in a Traffic Accident
• Understanding Workers' Compensation Insurance in Traffic Accidents (Leave Compensation)
• How Much Is the Standard Compensation for a Traffic Accident?
• What Is Residual Disability Grade Certification in Traffic Accidents?
• How Much Compensation Can You Get for Whiplash from a Traffic Accident?
• Benefits of Hiring a Lawyer for Traffic Accidents
• Key Points When Dealing with Insurance Companies After a Traffic Accident
• How to Calculate Lost Income from a Traffic Accident
• The Relationship Between Number of Hospital Visits and Compensation for Pain and Suffering in Traffic Accidents (Key Considerations When Visit Frequency Is Low)
• What Is Maximum Medical Improvement (MMI) After a Traffic Accident?
• How to Use Lawyer Fee Special Coverage for Traffic Accidents?
• How to Handle a Traffic Accident When the At-Fault Driver Has No Insurance
• Damages in Bicycle Accidents
• Claiming Compensation When a Passenger Is Injured in a Traffic Accident
• Do You Have to Pay a Traffic Fine for a Burned-Out Brake Light?
• "I Said I Would Pay the Full Repair Cost" in a Bicycle Accident
• If Repair Costs Exceed Your Car's Market Value After a Traffic Accident, Can You Still Recover the Full Amount?
• Can a Car Proceed if a Pedestrian Yields at a Crosswalk?
• What Are "Replacement Incidental Costs" When a Vehicle Is Totaled in a Traffic Accident?
• What Damages Can Be Claimed When a Family Member Dies in a Traffic Accident?

See all articles on traffic accidents