How Does the Insurance Company Compensate After a Car is Scrapped?
1 Answers
To apply for a vehicle scrapping claim, the primary prerequisite is that the car owner has purchased the corresponding vehicle damage insurance; otherwise, they must bear all consequences themselves. The details regarding vehicle scrapping are as follows: 1. For vehicle damage caused by traffic accidents: Insurance companies generally adhere to the principle of "repair first." If the vehicle does not meet the scrapping standard, compensation will be made according to the terms stipulated in the insurance contract, with the insurance company paying the repair costs. However, if the vehicle damage has reached the scrapping standard—meaning the estimated repair costs are equal to or exceed the actual value of the vehicle—the insurance company will process the claim as a vehicle scrapping insurance case. 2. If only the car owner believes their vehicle is scrapped: They cannot apply for a scrapping claim, as this primarily depends on the assessment results from the evaluation department. For novice drivers, due to their lack of experience, traffic accidents are more likely to occur, and vehicle part repair costs are generally high. Minor accidents may result in partial body deformation, while severe accidents could lead to vehicle scrapping. In such cases, having purchased vehicle damage insurance can help the owner receive some compensation.
