Is the compensation 100,000 if the car is totaled with a damage value of 100,000?
2 Answers
If the car is totaled with a damage value of 100,000, the compensation will be 100,000. Explanation: When a car is totaled in an accident with a damage value of 100,000, the full amount of 100,000 will be compensated. If the insured amount is equal to or lower than the actual value at the time of the incident, the compensation will be based on the insured amount. If the insured amount is higher than the actual value at the time of the incident, the compensation will be based on the actual value at the time of the incident. Within three months from the date of vehicle repair or the conclusion of the traffic accident case, the policyholder should submit the insurance policy, accident handling certificate, accident mediation agreement, repair list, and other relevant documents to the insurance company to claim compensation. If a dispute arises with the insurance company and no agreement can be reached, the policyholder may apply for arbitration with an economic contract arbitration authority or file a lawsuit with the People's Court. Introduction to Vehicle Insurance: Vehicle insurance, also known as motor vehicle insurance or auto insurance, refers to a type of commercial insurance that covers liability for personal injury or property damage caused by natural disasters or accidents involving motor vehicles. Auto insurance is a category of property insurance. Within the field of property insurance, auto insurance is a relatively young type of coverage, as it emerged and developed alongside the advent and popularization of automobiles. Unlike modern motor vehicle insurance, early auto insurance primarily focused on third-party liability coverage and gradually expanded to include risks such as collision damage to the vehicle body.
I once heard that my neighbor's car was completely totaled in an accident. He originally paid 100,000 for it and thought the insurance company would directly compensate him with 100,000, but in reality, he only received a little over 70,000. It turns out that because the car had been driven for several years, its market value had already depreciated. Insurance companies compensate based on the actual value of the car before the damage, not the new car price. They hire appraisal agencies to calculate this, deducting depreciation, deductibles, etc. If the accident wasn't entirely your fault, or if the insurance policy doesn't cover comprehensive insurance, the compensation could be even less. I recommend checking your insurance policy immediately to confirm if you have total loss coverage, and also take photos of the accident scene as evidence to avoid disputes later. Vehicle depreciation is a normal phenomenon, and those buying used cars should also pay attention to the vehicle's history. Don't naively think that a totaled car will be compensated at its original price—this can easily lead to disappointment.
