How Does the Insurance Company Compensate If a Car Is Totaled?

[DeGarrett]

Compensation amount = New car purchase price - Depreciation amount (if the no-deductible insurance is not purchased, a portion will also be deducted). Below is the compensation situation from the insurance company when a car is totaled: 1. First category: When the repair cost of the vehicle is higher than 80% or more of the vehicle's value, the insurance company will settle the claim according to the vehicle being totaled. 2. Second category: The vehicle meets the mandatory scrapping standards. According to Article 4 of the "Mandatory Scrapping Standards for Motor Vehicles," registered motor vehicles shall be mandatorily scrapped under the following circumstances. (1) After repair and adjustment, they still do not meet the national safety technical standards for in-use motor vehicles. (2) After repair and adjustment or the adoption of control technology, the emission of pollutants or noise into the atmosphere still does not meet the national standards for in-use motor vehicles.