Is Vehicle Damage Insurance Based on the Car's Price?
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Vehicle Damage Insurance refers to a type of commercial auto insurance where the insurance company compensates within a reasonable range for damages to the insured vehicle caused by an insured accident while the insured or an authorized driver is operating the vehicle. Below are relevant extended details: 1. Introduction: Vehicle Damage Insurance is generally fully insured based on the new car purchase price, which includes the purchase tax, as this is a common industry practice. However, when renewing the insurance, the premium can be calculated based on the ex-factory price of the car. For new car insurance, the insured amount for Vehicle Damage Insurance must include both the ex-factory price and the purchase tax, which is a unified regulation. Not only Vehicle Damage Insurance but also Theft Insurance and Spontaneous Combustion Insurance are calculated based on this standard. The insured amount for Vehicle Damage Insurance must include the purchase tax, and in the event of a claim, full compensation will be provided within the scope of insurance liability. The calculation method of ex-factory price plus purchase tax is a common industry practice, but through telephone or online insurance channels, certain discounts may be available, which is essentially equivalent to calculating the premium based on the ex-factory price. 2. Conditions: Vehicle Damage Insurance does not provide full compensation. Insurance companies set an absolute deductible in the Vehicle Damage Insurance terms based on specific circumstances and list liability exclusion clauses. Currently, many insurance companies offer No-Deductible Insurance, allowing the insured to transfer the deductible amount they are responsible for in an accident to the auto insurance company, resulting in a higher claim amount for the car owner.
