How is vehicle salvage value calculated by insurance companies?

[DeCalvin]

Normally, a monthly depreciation rate of 0.6% (7.2% annually) is applied. However, insurance companies often negotiate a market price with vehicle owners that both parties can accept, as standard depreciation calculations may deviate from actual market values. For instance, some vehicle brands/models retain value better, making their market prices higher than standard depreciation values, and vice versa. Below are relevant explanations: 1. Definition of salvage valuation: It refers to assessing the residual value of accident-damaged vehicles to determine their remaining worth with legal documentation. This typically occurs when vehicles sustain significant damage, aiming to establish reasonable loss assessment solutions. 2. Processing time: Varies by insurer; Ping An Insurance generally requires three working days (counted from when the loss adjuster submits the salvage valuation request to the branch). If delayed by the adjuster, the timeframe becomes uncertain. The salvage valuation process maintains transparency with reliable pricing.