Does the Auto Damage Insurance Cover the Full Claim Amount?

[BradleyMarie]

Auto insurance does not necessarily pay out the full assessed damage amount. If the actual incurred expenses (such as vehicle repair costs, victim medical expenses, and property losses) are higher than or equal to the assessed damage amount, the claim will be settled based on the assessed amount, meaning you get what was assessed. However, if the actual expenses are lower than the assessed amount, the claim will be settled based on the actual expenses. Typically, the insurance policy will specify the insured amount, which is generally related to factors such as the vehicle's age and the current market price. When purchasing auto insurance, the policyholder and the insurer can negotiate and determine the coverage amount based on actual circumstances. Of course, higher coverage amounts usually result in higher premiums. In the event of a claim, the insurance company will determine the compensation ratio based on the "proportion of the insured amount to the new car purchase price," with the maximum compensation not exceeding the vehicle's actual value. Methods for determining auto insurance coverage amounts: 1. Based on the new car purchase price: This method is generally considered full coverage, where the policyholder can receive compensation matching the actual loss in case of a claim. 2. Based on the actual value at the time of purchase: The actual value refers to the new car purchase price minus depreciation. While this method may reduce premiums, it is considered underinsurance from a coverage perspective. In the event of partial vehicle damage, the insurance company will only compensate a certain proportion based on the ratio of the actual value to the new car price. Since the policyholder is insured for the vehicle's actual value, most auto parts claims will be settled based on their depreciated prices. 3. Negotiated between the policyholder and the insurance company: This method is typically used for rare vehicle models or confiscated vehicles. Rare models often lack comparable market prices and tend to have higher values, while confiscated vehicles are usually purchased at very low prices.

[DeSienna]

I just went through a car damage insurance claim, and it's true that you don't get paid the full insured amount. In that accident, my car damage insurance coverage was 150,000 yuan, but during the damage assessment, I found out that my 5-year-old car was only worth about 90,000 yuan. The worst part was that the repair cost was 38,000 yuan, but the insurance company deducted the salvage value and a 500 yuan deductible, so I only received a little over 30,000 yuan. What's more troublesome is that the assessor said if it's a minor scratch with repair costs below 2,000 yuan, you have to cover it yourself. I recommend using a used car valuation app to check your car's current value beforehand. When purchasing insurance, don't be misled by the coverage amount—focus on comparing different companies' deductible clauses and depreciation rules.

[LeAyla]

Vehicle damage insurance compensation and the insured amount are two different concepts. I purchased insurance for my own car with a coverage of 170,000 yuan. Later, the car was completely totaled in a rear-end collision, and the insurance company directly compensated based on the second-hand market price of 90,000 yuan on the day of the accident, regardless of the insured amount. If it's just about car repairs, it depends on the situation: damaged parts are compensated at the price of new parts but with depreciation calculated, while labor costs are fully covered. The key point is to check the absolute deductible in your policy. For example, if a 500 yuan deductible is agreed upon, you will have to bear 500 yuan out of a 2,000 yuan repair cost. When filing a claim, bring the vehicle registration certificate and purchase invoice, and have the loss assessor calculate the details on the spot.

[AlexaRose]

I learned this the hard way during my claim last year. The insured amount under the car damage insurance is just a cap, and the actual payout depends on the vehicle's depreciation at the time of the accident. My SUV was in its third year when the accident occurred. Although the insured amount was stated as 220,000 yuan, the damage assessment report indicated its current value was only 160,000 yuan. The repair cost was 70,000 yuan, but they deducted an additional 10% for depreciation. The most critical part is the deductible clause—without purchasing additional coverage, there's a 15% deductible for each claim. When insuring, it's best to calculate the insured amount based on the new car purchase price. During claims, remember to ask the assessor to provide the basis for the residual value calculation.

[SanAlexa]

Only after going through a car damage insurance claim did I realize that the payout is deducted by at least three items. First, it's calculated based on the vehicle's actual value at the time of the accident (not the insured amount). My three-year-old car depreciated by 35% directly. Then, the repair costs are also subject to a deductible—my policy clearly states a 300 yuan deductible per incident. If parts are severely damaged, the insurance company will deduct the salvage value of the old parts from the claim. The most frustrating part is that if the car is totaled, the vehicle is taken away when you receive the payout. It's advisable to compare quotes from several repair shops during the claim process, as the shops frequently partnered with insurance companies tend to offer fairer damage assessments.