Ignacio De la Calzada, lawyer: "If you have a traffic accident, the insurance will take into account the market value of the car, which is not the market value, and will be much lower than the price you paid."

How much is your car really worth? It sounds like a line from an advertisement, but it's far from it. The reality is that if your car is involved in an accident or a serious mishap , the value assigned to it by the insurance company will be much lower than what it cost you at the time of purchase. In the case of vehicles that are only a few years old , the situation is even more striking. All this is explained to us by lawyer Ignacio De la Calzada, better known by his social media alias, 'Un Tío Legal'. On his TikTok channel ( @laboral_tips ) he has more than a million followers, and in one of his latest videos, he explains the difference between the real value of our car and its market value .

And what is this market value? In short: "It's the value you'll get for the car if you've lost it due to a catastrophe or a traffic accident," the lawyer begins in his video. " The insurance company or the consortium, when making the appraisal, will pay a much lower price than what you paid. And they'll very likely not even repair it; they'll declare it a total loss . And this is because the market value is not the market value," explains 'Un Tío Legal' in his video.

The key is calculating the market value, which only takes into account the vehicle's age. The general depreciation table is published in the Official State Gazette (BOE) , as well as the updated prices for each car sold in Spain. Thus, during the first year, the market value of your car is 100%, but after 12 years, it will only be 10%. "The market value is used by insurance companies to determine the value of your car for purchase or repair purposes. It depreciates over time ," summarizes attorney Ignacio De la Calzada.

And this is where the insurance valuation comes in. If they classify it as a total loss, prepare for what's next , the key to everything: "If the repair exceeds the vehicle's market value—that is, the repair is €15,000 and that car has a market value of €10,000—they'll normally pay you €10,000," says 'Un Tío Legal'.

Ignacio De la Calzada is very clear about the procedure: “Sometimes they give you a higher percentage, but you won't receive the amount you paid. It's quite possible they won't repair it and give you compensation so you can buy another one later ,” he asserts. And it doesn't matter if your car is fully comprehensive or the other party's fault . The rules are what they are: “You might get angry, but this is legal,” the lawyer concludes his argument. He's not wrong.