Who is responsible for the purchase tax when a new car is scrapped due to flooding?
2 Answers
When a new car is scrapped due to flooding, the insurance company is responsible for the purchase tax. Here are some considerations for purchasing auto insurance: Purchase channels: Pay attention to choosing legitimate insurance companies and agents who have professional qualification certificates, practice licenses, and formal agency contracts with insurance companies. Consider personal needs: Select insurance products based on actual needs and fully understand the terms and conditions of auto insurance. Pay attention to the use of important documents: Properly use and keep important insurance documents, fulfill the obligation of truthful disclosure, pay insurance premiums on time, and agree with the insurance company on dispute resolution methods for the contract.
I just dealt with a similar situation at the beginning of this month. A friend's brand-new car got submerged up to the steering wheel during heavy rains in the south, and it was declared a total loss. The issue with purchase tax is actually quite clear-cut—insurance companies don't compensate for it separately. They settle claims based on the depreciated actual value of the vehicle, which by default includes the allocated portion of purchase tax. In other words, even though purchase tax and the car price are listed separately on the invoice, they're factored into the overall vehicle value during claims. I did the math for him: a 300,000 RMB car with 26,000 RMB purchase tax was only worth 250,000 RMB when it got flooded, and the 250,000 RMB insurance payout already included that tax portion. Ultimately, purchase tax is an expense in the car-buying process, just like compulsory traffic insurance—insurers won't cover it as an extra. If you really want to push it, you could take legal action, but there's basically no chance of success.
