How Does the Insurance Company Compensate for a Totaled Car?
2 Answers
Generally, the insurance company's compensation formula is 'Vehicle Price * (1 - 0.6% * Months of Use) - Vehicle Residual Value,' where 0.6% is the monthly depreciation rate of the car. The compensation method may vary depending on the insurance company and the insured amount. The specific process for claiming compensation after a vehicle is totaled: 1. Report the Incident: The first thing to do after an accident is to report it, ensuring to preserve the accident scene. 2. On-site Inspection: If the loss is minor, the insurance company will send someone to inspect the site directly and issue an inspection report. If the loss is significant, the insurance company will report to the traffic police, who will then intervene at the scene, conduct investigations, and issue an accident report. 3. Damage Assessment: Transport the vehicle to the assessment center and inform the insurance company about the extent of the damage. 4. Claim Settlement Process: Gather the necessary documents and submit them to the insurance company to process the claim. 5. Compensation: After calculations, the insurance company will transfer the compensation amount to the account specified by the vehicle owner.
Last year, my car was rear-ended on the highway and completely totaled. The insurance claim process actually has quite a few nuances. I immediately called the police and contacted my insurance company, who sent an adjuster to inspect the scene and take photos of the damage. The compensation amount isn’t based on the new car price but rather the market value at the time of the accident, minus the deductible. Specifically, my car was originally bought for 150,000 yuan, driven for over 4 years with 70,000 km on it, and was assessed at 80,000 yuan. With a 500-yuan deductible on my policy, I actually received 79,500 yuan. But there’s a catch: if your car loan isn’t fully paid off, the insurance company might pay the bank first, leaving you to cover any shortfall. The whole process took me 10 days. I recommend taking photos at the scene in advance, keeping repair records and insurance documents, and not rushing to sign any paperwork. Factors affecting compensation include the car’s age, condition, and brand resale value; new cars depreciate quickly, so compensation may be lower, while older cars might be worth even less. After the claim is settled, remember to follow up on the payment, as they sometimes delay it.
