Is Constructive Total Loss Advantageous for Car Owners?

[LaLily]

It is neither fair nor reasonable for car owners. Here are the relevant explanations: 1. Constructive Total Loss: This refers to a situation where actual total loss is unavoidable, or when the residual value of the damaged vehicle plus the costs of rescue, arrangement, and repair exceed its actual value, it is deemed as a total loss. Constructive total loss is the opposite of actual total loss. Although the insured vehicle is not completely destroyed and can be repaired, the cost of repair would exceed the actual value of the rescued insured vehicle, making it not worth the effort. 2. Factors: Constructive total loss is not a real total loss, as the damaged car can be repaired. Considering frugality and emotional attachment to the old car, even though the repair cost of the damaged car is higher than the actual value calculated based on depreciation, the owner may still want to repair and continue using it. If the general total loss procedure is followed, where the insurance company deducts the residual value or takes back the damaged car, it is neither fair nor reasonable for the car owner.