How to Claim Compensation for a Total Loss Vehicle?
2 Answers
Below are two scenarios for total loss vehicle compensation: 1. After a total loss of the insured vehicle, if the insured amount is higher than the actual value at the time of the incident, compensation will be calculated based on the actual value at the time of the incident. 2. After a total loss of the insured vehicle, if the insured amount is equal to or lower than the actual value at the time of the incident, compensation will be calculated based on the insured amount. Below is the relevant introduction to total loss insurance for vehicles: 1. Total loss insurance is a type of insurance that recognizes compensation only in cases where the goods are completely lost or deemed a constructive total loss. 2. Total loss insurance typically refers to a compensation insurance system for when goods are completely lost or deemed a constructive total loss during transportation or transactions. 3. Generally, there are only two situations where the goods are considered completely lost and currently unusable, which is then recognized as total loss insurance. 4. Another situation is when the goods are not completely lost, but due to non-violent events causing missed delivery times, resulting in the total loss of the goods' value and being deemed a constructive total loss, which can also be considered for total loss compensation.
Last year, my car was totaled in a collision, and dealing with the insurance company was quite exhausting. A total loss means the repair costs exceed the car's actual value, so they simply pay out cash. The compensation is based on the car's current market value—for example, what a 5-year-old used car could fetch in the secondary market, minus the deductible. I had to file a claim first, after which they sent an assessor to inspect the car's condition and document the accident details. Then, I prepared my vehicle license, ID card, accident report, and original purchase invoice, submitting everything. When the insurer calculated the value, they initially lowballed it, so I checked prices for similar models on Guazi (a used-car platform) and argued with them to adjust it properly. I received the payout within a month, and the car was taken away for disposal. My advice? Stay calm, ensure all documents are complete, and communicate persistently—this helps avoid later hassles like license plate deregistration.
