Why are there many cases where insurance companies pay compensation for an accident, but the car can't be repaired for that money? One of the main reasons is in the calculation of wear and tear. We will tell you how much it affects the payment and how you can avoid using this factor when calculating the amount of insurance compensation.

Car depreciation: the principle of calculation.

The law provides that the insurance company necessarily takes into account the wear and tear of the vehicle when calculating the amount of insurance compensation. For this purpose, a special coefficient is applied.

The service life of the car is at most seven years. Also, the depreciation factor can be zero for trucks, trailers, semi-trailers, and buses, provided that they:

• Locally manufactured, have been in use no longer than three years;
• Development of other countries -no longer than four years.

At the same time, the coefficient will be greater than zero when:

• The car does not fall within the above parameters;
• It is used intensively, i.e., the mileage is twice as much as the indicator taken as a norm;
• It was used intensively, i.e., the mileage is twice the normal value; -Repair of some parts has been repaired, or there is some damage such as deformation or corrosion;
• The car has been used as a cab.

How much is the indemnity reduced due to wear and tear?

It depends on what exactly was damaged in the car. And before you make out your claim, calculate your options, and call tracking will help you do that. After all, if you are buying a reconditioned car and want to take out insurance, this car will be carefully checked, so before buying, you should also auto to understand at least approximately what you can count on. A quick guide can be found here https://leadmanagement.reviews/. It is to these parts that the insurance company applies a depreciation factor. However, even with this condition, the difference between the real repair cost and the insurance payment is often quite substantial, especially for a car that is not new, with a depreciation rate of 70%.

The amount of wear and tear and the deductible will be demanded from the party at fault. And in practice, in 89% of cases, the courts will satisfy such claims, obliging the guilty party to compensate for the wear and tear. The advantage is given to the victim of the accident and the property damaged by the guilty party.

How can I avoid problems with calculating the payout?

Insurance companies are well aware of drivers who want to receive the full amount of the insurance settlement and not have the added hassle of wear and tear. Often companies have their own special voluntary liability insurance programs where the deductible factor is excluded when calculating the payout. It is sufficient to clarify this point directly with the insurance company.