How to Calculate Full Insurance Compensation for Total Loss in Car Accidents?
2 Answers
The calculation formula for full insurance compensation for total loss in car accidents is as follows: Compensation Amount = Vehicle Purchase Price - Vehicle Purchase Price * 0.6% * Number of Months from the Initial Registration Date to the Accident Date - Residual Value. (The monthly depreciation rate for passenger cars is 0.6%, and the residual value is the current value of the totaled vehicle.) Additional Information: Insurance Claims for Totaled Vehicles in Car Accidents: 1. Register with the Traffic Management Department of the Public Security Authority: a. The vehicle owner must bring their ID card, vehicle registration certificate, driving license, and license plate to the business department of the vehicle dismantling factory to fill out the "Application Form for Vehicle Suspension, Resumption, or Cancellation of Registration"; b. Apply at the registration acceptance counter. For vehicles that have reached the end of their service life, an "Vehicle Scrapping Notice" will be issued. For vehicles that have not reached the end of their service life but need to be scrapped due to a traffic accident, the vehicle inspection counter will verify and issue an "Vehicle Scrapping Notice" if the vehicle meets the scrapping standards; c. The owner must take the "Notice" and choose a qualified recycling company to dismantle the vehicle; d. The owner must submit the "Change Form," "XX Province Vehicle Technology Update Appraisal Form," "Scrapped Vehicle Recycling Certificate," and photos of the dismantled vehicle for approval and complete the vehicle scrapping registration. 2. Bring the Required Documents to the Insurance Company: Bring the necessary documents to the insurance company to apply for the vehicle scrapping insurance claim. (Required documents include: insurance policy, driving license, vehicle owner’s ID card, insurance certificate, vehicle license plate, organization code certificate, accident vehicle certification materials, and the vehicle scrapping notice.)
To be honest, I've driven several cars. Once, a friend had a severe accident that totaled his car. His comprehensive insurance calculated the compensation based on the vehicle's actual value minus the deductible. The insurance company checks the market price before the accident, considering factors like the year, model, mileage, and condition, then uses a used car valuation tool to determine its worth. For example, if the car was originally bought for 150,000 and is worth 80,000 after five years, with a 500 deductible, the compensation would be 75,000. The key is they might send someone to inspect the car to confirm it's totaled, like when repair costs exceed the residual value. It's important to report the claim quickly, bring accident photos and vehicle records, and not delay to avoid affecting efficiency. The whole process takes a few weeks, and with the compensation, you can get a safer new car. Safety first when driving, avoid sudden braking on highways.
