How is vehicle damage insurance calculated?
2 Answers
Vehicle damage insurance premium = (base premium + vehicle purchase price * rate) * discount factor. Below are the details of vehicle damage insurance: 1. Definition of vehicle damage insurance: Vehicle damage insurance is a type of commercial auto insurance where the insurance company compensates within reasonable limits for damages to the insured vehicle caused by an accident while being driven by the insured or an authorized driver. 2. Coverage of vehicle damage insurance: In the event of an insured incident, the insurer will bear the necessary and reasonable rescue expenses paid by the insured to prevent or reduce the loss of the insured vehicle, up to the amount of the insured sum.
When I insured my car against damage, the insurance company first asked about the brand and purchase price of the car. My car was worth 100,000 yuan when new, and after one year of use, the depreciation reduced the insured amount to 90,000 yuan. The premium was then calculated by multiplying this amount by the rate, which was around 0.5%, resulting in only 400-500 yuan. They also checked my driving record, and since I had no accidents in three years, I got a discount, reducing the premium to just over 400 yuan. Setting a high deductible can also save money. I chose a 5,000 yuan deductible, which made the premium cheaper but meant I would pay for minor accidents myself. The car damage insurance covers a wide range of incidents, including collisions and natural disasters. Last year, my neighbor's car was flooded in a heavy rainstorm, and without insurance, they had to spend a lot on repairs, so I feel it's worth it. Comparing rates from several insurance companies showed differences, and I chose the lower one. Online platforms provide quick and accurate quotes by simply entering car details. New cars have higher premiums, while older cars have lower ones, and depreciation reduces premiums year by year, which is worth noting.
