How is the compensation amount calculated for motor vehicle loss insurance?

[OTeagan]

There are two specific scenarios: 1. If the insured amount is higher than the actual value of the vehicle at the time of the incident, the compensation should be calculated based on the actual value at the time of the incident. The specific calculation formula is: Actual compensation amount = (Actual value at the time of the incident - Residual value) × (1 - Deductible rate). 2. If the insured vehicle suffers a total loss and the insured amount is equal to or lower than the actual value of the vehicle at the time of the incident, the compensation should be calculated based on the insured amount. The specific formula is: Actual compensation amount = (Insured amount - Residual value) × (1 - Deductible rate). Partial loss refers to local damage to the insured vehicle that does not reach the level of total destruction or presumed total loss. Compensation for partial loss is also divided into two scenarios: 1. For vehicles with the insured amount determined based on the new vehicle purchase price, the compensation should be calculated based on the actual repair costs and necessary, reasonable rescue expenses. The formula is: Compensation amount = (Actual repair and rescue costs - Residual value) × (1 - Deductible rate).

[ElliotMarie]

I remember when I had my first accident, the insurance company sent someone to assess the damage. The compensation amount wasn’t calculated arbitrarily—it mainly depends on your loss amount and the deductible. For example, my car’s repair cost was 8,000 RMB, but the deductible in the contract was 500 RMB, so the insurance company compensated 7,500 RMB. The accident liability ratio is also considered. If you’re fully at fault for the accident, you can receive close to the full amount; if you’re partially at fault, say 70% liable, the compensation will be discounted accordingly. Vehicle depreciation is another key factor—new cars have higher insured values and receive more compensation, while older cars are depreciated and receive less. Later, I added a no-deductible clause to my policy, which allows me to claim more by covering the deductible portion. Checking the car’s condition during regular maintenance and avoiding frequent claims actually saves hassle and money, and it keeps premium increases minimal.