Is Total Vehicle Loss Compensated Based on the Insured Amount or Actual Value?

[OmarLee]

Vehicle damage insurance falls under the category of basic commercial insurance. The insured amount can be determined based on either the new car purchase price at the time of insurance or the actual value of the vehicle. It can also be negotiated within the new car purchase price of the insured vehicle at the time of insurance. The calculation formula for vehicle damage insurance: Basic premium + new car purchase price X rate. Vehicle owners can also opt for underinsurance, which reduces the premium but also results in a proportional reduction in coverage. Compensation method for vehicle damage insurance: Vehicle damage insurance covers the cost of repairing the insured vehicle when the policyholder is at fault. If an additional waiver of deductible agreement is purchased, the claim through vehicle damage insurance can cover almost the full amount. Without the waiver of deductible, approximately 80% of the cost will be compensated.