How Does the Insurance Company Compensate for a Totaled Vehicle?
1 Answers
To apply for a total loss claim for a vehicle, the primary prerequisite is that the owner has purchased the corresponding vehicle damage insurance; otherwise, all consequences must be borne by the owner. The following is an introduction to vehicle total loss: 1. For vehicle damage caused by traffic accidents: Insurance companies generally advocate a 'repair-first' standard. If the vehicle does not meet the total loss 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 total loss standard—meaning the estimated repair costs are equal to or exceed the actual value of the vehicle—the insurance company will compensate according to the total loss insurance. 2. If only the owner believes the vehicle is totaled: They cannot apply for a total loss claim; this mainly depends on the assessment results from the evaluation department. For novice drivers, due to lack of experience, traffic accidents are more likely to occur, and vehicle part repair costs are generally high. In minor accidents, parts of the body may be deformed, while in severe cases, the vehicle may be totaled. In such cases, the purchased vehicle damage insurance can help the owner obtain some compensation.
