Economic total loss procedure (French VEI)

When the expert finds that the cost of repairing a crashed vehicle exceeds its replacement value as assessed, the vehicle is deemed an economic total loss. The insurer must then offer the owner total loss compensation within a set time, and the owner chooses. If the owner accepts, the vehicle is transferred to the insurer, which becomes its owner and sells it as a wreck to an approved professional, the proceeds forming a salvage value. If the owner refuses, they keep the vehicle, receive compensation reduced by the wreck's value, and the insurer notifies the authorities, which block transfer of the registration certificate until an expert certifies the repair. A similar procedure applies to seriously damaged vehicles, whose safety is at stake regardless of cost. The arrangement protects used car buyers against dangerous vehicles returning to the road.