How does the insurance company compensate for a motor vehicle accident that results in the vehicle being scrapped?

[McWalker]

Insurance companies calculate the claim amount based on the legally prescribed loss rate. The annual depreciation rate of 6% for the vehicle damage insurance coverage is applied. The claims for total vehicle damage are as follows: 1. If the insured amount is equal to or lower than the actual value at the time of the accident, the compensation will be based on the insured amount. 2. If the insured amount is higher than the actual value at the time of the accident, the compensation will be based on the actual value at the time of the accident. Important Notes: Within three months from the date of vehicle repair or the conclusion of the traffic accident case, the policyholder should present the insurance policy, accident handling certificate, accident mediation agreement, repair list, and other relevant documents to the insurance company to claim compensation. If a dispute arises with the insurance company and an agreement cannot be reached, the policyholder may apply for arbitration with an economic contract arbitration authority or file a lawsuit with the People's Court.