How to Calculate New Car Damage?
2 Answers
New car damage calculation is Vehicle Damage Insurance Premium = (Base Premium + Vehicle Purchase Price * Rate) * Discount Coefficient. Below is relevant information about vehicle damage insurance: 1. Meaning of Vehicle Damage Insurance: Vehicle Damage Insurance refers to compensation by the insurance company within reasonable limits when the insured or an authorized driver causes damage to the insured vehicle during an insurance-covered accident. 2. Coverage Scope: This insurance does not cover theft, robbery, standalone glass breakage, standalone wheel damage, etc. Therefore, not all vehicle damages will be compensated by the insurance company after an accident.
When purchasing a new car, the calculation of vehicle damage insurance is primarily based on the purchase invoice price, known as the new car purchase price principle. In the first year, if the car is totaled, the insurance company will generally pay the full amount, but depreciation is rapid, averaging about 1% per month, especially steep in the first three years. Premiums are heavily influenced by the vehicle's brand and model—luxury cars, for instance, can double the premium. The owner's age and driving record also play a crucial role; new drivers or those with frequent violations will naturally face higher premiums. There's also the concept of a deductible—the out-of-pocket amount you choose, whether 500 or 1000 yuan—opting for a higher deductible can slightly reduce the premium. In the event of an accident, repairs are covered only after exceeding the deductible. However, if the car is totaled without being repaired, only the current residual value is compensated. I recommend new car owners opt for comprehensive coverage—don’t skimp, as repairs for new cars are expensive.
