How Much Insurance Can Be Refunded When a Vehicle Is Scrapped?
2 Answers
According to the Regulations on Compulsory Insurance for Motor Vehicle Traffic Accidents, when a vehicle is scrapped and the insurance contract is terminated, the insurance company may collect the premium from the date the insurance liability begins to the date the contract is terminated, and the remaining portion of the premium will be refunded to the policyholder. Motor Vehicle Scrapping Process: The owner of a vehicle applying for scrapping and renewal should fill out and submit one copy of the "Motor Vehicle Change, Transfer, Modification, Suspension, and Scrapping Approval Application Form" with the owner's seal affixed. Apply at the registration acceptance counter, and for vehicles that have reached the scrapping age, a "Vehicle Scrapping Notice" will be issued. For vehicles that have not reached the scrapping age, after inspection and confirmation by the motor vehicle inspection counter that they meet the scrapping standards, a "Vehicle Scrapping Notice" will be issued. The vehicle owner can then choose a qualified recycling company to dismantle the vehicle. The recycling company will dismantle the vehicle and take photos after verifying the "Notice". It is required that the engine be separated from the vehicle, the engine block be broken, and the frame (chassis) be cut. The vehicle owner should then submit the "Change Form", "XX Province Vehicle Renewal Technical Appraisal Form", "Scrapped Vehicle Recycling Certificate", and photos of the dismantled vehicle to the motor vehicle inspection counter for verification and signature. The license plates and certificates will be reclaimed, and the scrapping registration will be processed after approval according to regulations.
Last year, I scrapped an old car, and I have a deep understanding of how much insurance premium can be refunded. The refund from the insurance company mainly depends on how much time is left on the policy, calculated proportionally based on the remaining days. For example, if you bought an annual insurance policy for 3,000 yuan and scrapped the car after six months, theoretically, you could get around 1,500 yuan back. But don’t get too excited—companies usually deduct a service fee, about 5% to 10%, so the actual amount you receive will be less. In my case, there were three months left on the policy, and I got a refund of over 900 yuan. In terms of the process, you need to notify the insurance company that the car has been scrapped. They will send you an application form, which you fill out and return, and the money will be deposited into your account within about two weeks. It’s best not to cancel the insurance in advance; wait until the official scrapping is completed to avoid being uninsured in case of an accident in the meantime. Also, policies vary between companies—some refund quickly, while others take longer, so it’s best to check with customer service beforehand. Remember to keep the scrapping certificate, as it can save you a lot of trouble. In short, how much you get back depends on the remaining time and the company’s rules.
