Does Vehicle Damage Insurance Include No-Deductible Coverage?
1 Answers
After the auto insurance reform in September 2020, vehicle damage insurance now includes no-deductible coverage. According to the "Guiding Opinions on Implementing Comprehensive Auto Insurance Reform," while maintaining the principle of not significantly increasing consumer premium expenditures, the industry is supported in expanding the scope of commercial auto insurance coverage. The reform guides the industry to enhance the main clauses of vehicle damage insurance in standard motor vehicle insurance products by adding coverage for risks such as vehicle theft, separate glass breakage, spontaneous combustion, engine water damage, no-deductible rates, and special provisions for cases where a third party cannot be identified, providing consumers with more comprehensive auto insurance protection services. The industry is also encouraged to develop additional insurance products like separate wheel loss insurance and medical expenses outside the health insurance liability coverage. Below is relevant information: 1. Vehicle Damage Insurance: This refers to a type of commercial auto insurance where the insurer compensates within reasonable limits for damage to the insured vehicle caused by an insured accident while the vehicle is being used by the insured or an authorized driver. 2. No-Deductible Coverage: This is an additional coverage for commercial insurance (vehicle damage insurance or third-party liability insurance). As an add-on, no-deductible coverage requires the purchase of a "main insurance" policy as a prerequisite and cannot be purchased separately. This coverage transfers the 5% to 20% of liability that would otherwise be borne by the insured to the insurance company.
