Is a 0 yuan absolute deductible for vehicle damage insurance normal?
2 Answers
Vehicle damage insurance with a 0 yuan absolute deductible is normal. Extended content about vehicle damage insurance: Meaning of absolute deductible: An absolute deductible of 0 yuan means that when the insured object suffers a loss, the insurer will absolutely not bear the compensation responsibility for losses below 0 yuan. For losses exceeding 0 yuan, the insurer will compensate for the excess amount. Meaning of relative deductible: The relative deductible compensation method involves the insurance company setting a deductible amount. When the damage to the insured property exceeds this deductible, the insurance company compensates for the entire loss without any deductions. The insurance company absolutely does not bear compensation responsibility for losses below the agreed amount. When the insured object suffers a loss, it must exceed a certain amount or ratio before the insurance company compensates for the excess. Losses below the specified limit are not compensated by the insurance company.
I've been driving for over 20 years and know car insurance inside out. Setting the absolute deductible for vehicle damage at 0 yuan is quite common, especially in high-end or comprehensive insurance plans. Simply put, you pay a bit more in premiums, and the insurance company covers all repair costs in the event of an accident, without you having to pay a single cent. Under normal circumstances, most people opt for some deductible, say 500 to 1000 yuan, which can lower the premium a bit. I've seen many new car owners choose 0 yuan for peace of mind, avoiding the hassle of dealing with money for minor accidents. This setup is mainly to make driving more worry-free, but you need to weigh whether the premium increase is worth it. My advice is to base it on personal habits: opt for 0 yuan if you're in an accident-prone area or drive a luxury car; otherwise, a standard deductible is more economical.