How is the late addition of vehicle damage insurance calculated?
3 Answers
With the arrival of auto insurance reform, the rates for various types of auto insurance have also changed accordingly. For 0-1 year, the base premium for vehicle damage insurance is 630 with a rate of 1.5%; for 1-4 years, the base premium is 594 with a rate of 1.41%. For 0-1 year, the base premium for vehicle damage insurance is 756 with a rate of 1.5%; for 1-4 years, the base premium is 713 with a rate of 1.41%. Basic premium + new car purchase price X rate. Of course, car owners can also choose underinsurance, which reduces the premium but also results in a discount on coverage. Insurance can be underwritten based on the new car purchase price; the actual value of the vehicle; or a price negotiated by both parties.
I've previously dealt with the back-payment of auto damage insurance. Insurance companies generally calculate the amount based on the proportion of remaining days. For example, if the annual premium is 4,000 RMB and you back-pay after using it for half a year, you'll need to pay around 2,000 RMB for the remaining half year, plus a handling fee. However, here's the key point: back-payment only covers the period after the payment, and any incidents before that won't be compensated. Moreover, if the car was involved in any accidents during the interim, the premium might increase. It's advisable to directly contact the insurance company and provide them with the VIN for verification—their system will calculate the exact amount to be paid. Also, remember to bring the vehicle registration certificate, as they'll need to take photos and inspect the car during the back-payment process to prevent you from concealing any accident records. It's best not to delay too long, otherwise, with fewer remaining days on the policy, the cost per day could end up being higher.
From the perspective of an insurance contract, adding car damage insurance later is essentially mid-term coverage supplementation. The insurance company will recalculate the premium based on the remaining validity period of your policy. For example, if your original car damage insurance costs 3,000 yuan per year and there are 3 months left until expiration, the supplementary payment would roughly be 3,000 divided by 12 months multiplied by 3, approximately 750 yuan. However, in practice, they use professional actuarial formulas which may involve adjustments for vehicle depreciation coefficients, so the actual supplementary amount could be slightly more than 750 yuan. Additionally, the new contract will specify the effective date after supplementation, and absolutely no claims will be paid for accidents that occurred before. If the car is over 5 years old, the car damage value must be reassessed. This matter should be handled promptly, as many companies do not allow supplementation after exceeding 80% of the original policy's validity period.
