Can You Choose to Abandon the Car After It's Severely Damaged in an Accident?
3 Answers
You can choose to abandon the car and have it scrapped directly after it's severely damaged in an accident. Compulsory Traffic Insurance: Compulsory traffic insurance is a mandatory insurance that every car owner must purchase by law. It provides the most basic insurance claims when a traffic accident occurs. In the event of a traffic accident, compulsory traffic insurance can help the car owner cover the economic compensation that would otherwise be difficult to pay. The compensation amount of compulsory traffic insurance is determined based on the car owner's proportion of responsibility in the accident and whether it caused casualties. Vehicle Damage Insurance: Vehicle damage insurance refers to the situation where the insured or the driver permitted by the insured causes an insurance accident while driving, resulting in damage to the insured vehicle. The insurance company will provide compensation within a reasonable range. The premium for vehicle damage insurance is closely related to the purchase price of the car and the number of seats. Third-party Liability Insurance: Third-party liability insurance refers to the situation where, in an accident, a third party other than the driver and passengers of the insured vehicle suffers personal injury or direct property damage. The insurance company will provide compensation according to regulations.
If the car is severely damaged, of course you can choose to abandon it. Last time my car was rear-ended so badly that the entire rear compartment was deformed. When the insurance company came to assess the damage, they said the repair costs exceeded the car's residual value and recommended going straight for the total loss process. In the end, they compensated me based on the depreciated value of the car and towed the wreck away. To be honest, it was quite convenient—saved me the trouble of finding a scrapyard myself. Just remember to have the car keys and registration documents ready, and complete the vehicle deregistration procedures. I recommend going through the official scrapping process; otherwise, keeping the car under your name could affect future vehicle purchases.
My advice is to do the math before deciding whether to proceed. Last time, my friend's car was completely wrecked in an accident, and the repair shop quoted over 100,000 RMB, but his car was only worth 70,000-80,000 RMB on the used market. The insurance company directly paid out the total loss amount, and he used that money plus some savings to buy a new car. Paying for the repairs out of pocket would indeed be uneconomical, and the car wouldn't feel reliable even after being fixed. However, be aware that if there's still an outstanding loan on the car or if it's been flooded, the situation becomes more complicated. It's best to consult a professional to figure out the most cost-effective approach.
