How Does the Insurance Company Compensate for a Totaled Car?
2 Answers
After a collision accident, if the damaged vehicle is found to meet the total loss standard upon inspection, the insurance company calculates the compensation based on the basic formula: "Insured Amount * (1 - Number of Months from Vehicle Registration to Total Loss * 0.6%) - Vehicle Residual Value." The final compensation amount is determined according to the actual condition of the vehicle. The standards for vehicle total loss are: 1. Failure to meet safety standards: The damaged vehicle, after repair and adjustment, still does not comply with the national safety technical standards for motor vehicles; 2. Failure to meet emission standards: The damaged vehicle, after repair and adjustment, still emits pollutants or excessive noise that does not comply with national standards; 3. Repair costs exceeding 80%: If the repair costs after an accident exceed 80% of the vehicle's pre-accident value, the vehicle can be declared a total loss.
Last time my car was rear-ended and totaled, the insurance claim process was actually quite straightforward. The insurance company immediately sent someone to take photos at the scene and assess the damage. After determining it met the total loss criteria, they compensated based on the vehicle's actual value. I had bought the car new for 150,000 yuan three years prior, and after depreciation it was appraised at 92,000 yuan. For the claim, I needed to prepare copies of my driver's license, vehicle registration, ID card, and insurance policy. After signing the vehicle handover form and rights transfer agreement, the money was deposited into my account within a week. They directly towed away the totaled car for disposal, and this residual value was also included in the compensation payment. The only complication is for owners with outstanding car loans - they need to settle the loan with the bank first before receiving the remaining compensation.
