Can I Get a New Car if My Car is Scrapped?

[DelVictoria]

If a car is scrapped, you will not receive a new car as compensation. If the insurance company determines it to be a total loss, they will compensate the owner based on the depreciated value of the car. Typically, the insurance company will sign a total loss agreement with the owner and provide a certain amount of compensation according to the agreed coverage. Below are the relevant details regarding claims: Claim Coverage: You must purchase the corresponding auto damage insurance to be eligible for a claim from the insurance company. In the case of vehicle damage after heavy rain, as long as the engine was not restarted after water ingress, all repairs and part replacements fall under the coverage of auto damage insurance. If the vehicle is stationary and completely submerged in water, resulting in a total loss, the insurance company will compensate for the total loss. However, if you do not have auto damage insurance, you will have to bear these losses yourself, as the insurance company will not provide compensation. Auto Damage Insurance: This refers to a type of commercial auto insurance where the insurance company compensates within reasonable limits for damage to the insured vehicle caused by an insured accident while the vehicle is being used by the insured or an authorized driver.

[MacMackenzie]

Last year, my car was totaled in an accident, and it took a long time dealing with the insurance company to understand the claims rules. As long as you have collision insurance, the insurer will compensate based on the actual value of the vehicle before the accident, but this is the depreciated price, not the new car price. To get a new car replacement, you'd need additional special coverage like 'new car replacement insurance.' My car was five years old, and the payout was only enough to buy a used one of the same model. If the accident was the other party's fault, their third-party liability insurance would also pay out, but again, only the residual value is considered. It's advisable to always review your insurance policy details—standard full coverage won't magically get you a brand-new car for free.

[LaEmiliano]

Just finished handling a total loss claim case, and the conclusion is that it's basically impossible to get a brand-new car as compensation. The insurance company only pays based on the market value of the vehicle at the time of the incident. For example, if you bought a car for 200,000 three years ago, it's now worth at most 100,000. Unless the accident occurs within the first week of picking up the car and you've purchased a specific additional coverage, some brands might offer a replacement service. Additionally, the determination of accident liability has a significant impact. If the other party is fully at fault, you'll pay less in depreciation fees, but the compensation is still based on the used car's value. The most practical approach is to add some money to the claim payout and use it to replace the car—don't expect the insurance to directly give you a new one.

[SanWeston]

Having worked in a repair shop for over a decade, customers often ask if they can get a brand-new car after a total loss. The reality is harsh: insurance companies depreciate the value based on the car's age. For example, a five-year-old car typically depreciates to 40%-60% of its original price. The worst case I've seen was a brand-new car totaled just three months after purchase—the insurer deducted the purchase tax and a 10% depreciation after checking the configuration manual. The only exception is some high-end brands' new car replacement service under full coverage, but it only applies if the claim is made within the first year. If you really want to push it, you can sue the at-fault party for the price difference, but courts generally support depreciation calculations.