What are the criteria for determining a vehicle as a total loss?
2 Answers
The criteria for determining a vehicle as a total loss are when the vehicle is severely damaged or destroyed as a whole, or when the actual repair costs reach or exceed 80% of the vehicle's actual value. Below is an introduction to auto insurance: Introduction: Auto insurance, also known as motor vehicle insurance or car insurance, refers to a type of commercial insurance that covers personal injury or property damage caused by natural disasters or accidents involving motor vehicles. Definition of auto insurance: A widely available insurance product in China, it covers motor vehicles such as cars, electric vehicles, motorcycles, and tractors as the subject of insurance. Auto insurance can be divided into commercial insurance and compulsory traffic insurance. Commercial insurance further includes primary vehicle insurance and additional coverage.
Last year, my car was severely rear-ended, and the repair shop quoted an exorbitant price of 200,000 yuan, while the market value of my old car was only 120,000 yuan. The insurance company immediately declared it a total loss and paid out. The standard is when the repair cost exceeds the current value of the car, typically with a threshold between 60% to 80%. For instance, if the repair cost is 70% of the car's value, it's not economical to fix it. Sometimes, frame deformation or engine failure, which pose high safety risks, can also trigger a total loss assessment. After a total loss is declared, you have the option to take the payout or handle the salvage yourself. I recommend not delaying and getting an insurance assessment as soon as possible to avoid further depreciation. This standard varies by region, so it's important to check the details of your insurance policy. Regular car maintenance can extend its lifespan and prevent accidents.
