Can I Get a New Car if My Car is Scrapped?
2 Answers
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.
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.
