How Does Car Damage Insurance Compensate for a Totaled Vehicle?
3 Answers
Car damage insurance has a certain deductible amount, which varies depending on the insurance company, typically ranging from 5% to 20%. The specific amount is based on the coverage of the car damage insurance. Below is the relevant information: 1. Car Damage Insurance: Car damage insurance provides compensation for vehicle repairs or total loss after an accident. Of course, the compensation depends on liability. If the accident involves another vehicle and the other party is fully at fault, their third-party liability insurance will cover the compensation. Car damage insurance mainly covers damages for which the driver is responsible or damages caused by single-vehicle accidents. 2. Totaled Vehicle: A vehicle that meets the national scrapping standards or, although not meeting the national scrapping standards, has a severely damaged engine or chassis and fails to meet the national safety technical requirements for motor vehicle operation or the national pollutant emission standards for motor vehicles is referred to as a totaled vehicle.
When my car was totaled in an accident, how does the auto damage insurance compensate? You need to report to the police and the insurance company first, then the insurer will send someone to assess the damage. If the repair cost exceeds the car's current value, they'll declare it a total loss and calculate compensation based on the actual cash value—the car's market value considering age, mileage, and market conditions, minus the deductible. It took me about two weeks to receive the payment, during which the car had to be towed to a designated location to avoid extra charges. I recommend handling it promptly—delaying the claim might affect the payout. Don't rush; just cooperate with the insurer by providing required documents. Safety comes first—don’t drive a totaled car. Getting a reliable replacement is the right move.
From experience, the steps for total loss payout under auto insurance are clear: You must report the accident immediately and submit the accident report along with vehicle documents to the insurer. An appraiser will then assess the damage - if repair costs exceed the car's actual cash value, they'll process it as a total loss, calculating payout after deducting your chosen deductible. As someone who frequently handles these cases, I advise selecting your deductible carefully when purchasing coverage. Don't move the vehicle during appraisal to avoid penalties. While the process is straightforward, delays may incur extra fees, so act promptly. Keep all documentation in case of disputes; insurers generally offer fair settlements.
