How Does the Insurance Company Compensate for Vehicle Scrapping?

[LeIvan]

Here are the situations where the insurance company compensates when a vehicle meets the scrapping criteria: 1. The vehicle involved in a traffic accident is damaged: The insurance company will advocate the principle of 'repair first.' If the vehicle does not meet the scrapping criteria, compensation will be provided according to the terms stipulated in the contract, and the compensation amount will be used for vehicle repairs. 2. The vehicle damage has reached the scrapping criteria: When the estimated repair cost is equal to or exceeds the actual value of the vehicle, the insurance company will process the claim as vehicle scrapping. 3. Traffic accidents caused by lack of experience: The repair cost for just one or two parts of many vehicles can amount to thousands of yuan. Therefore, many vehicle owners reasonably purchase vehicle damage insurance, which can provide some compensation for minor issues like partial body deformation or major issues like vehicle scrapping.