Is Vehicle Damage Insurance Fully Covered?
2 Answers
Whether vehicle damage insurance provides full compensation depends first on determining the liability amount based on the traffic accident responsibility, then subtracting the deductible, with the final amount received being the actual compensation. However, if an additional No-Deductible Coverage is purchased, full compensation may be possible. Here’s an introduction to vehicle damage insurance: Vehicle Damage Insurance is a type of commercial auto insurance where the insurer compensates within reasonable limits for damages to the insured vehicle caused by an accident while being used by the policyholder or an authorized driver. Vehicle Damage Insurance does not offer full compensation; insurers set an absolute deductible and list exemption clauses in the policy terms based on specific circumstances.
Vehicle damage insurance doesn't cover everything – there are many limitations. I learned this the hard way after experiencing an accident myself. Last year, my car got rear-ended, and I initially thought that since I had vehicle damage insurance, the insurer would cover all repair costs. However, I only received partial compensation. The reason is that vehicle damage insurance includes a deductible clause, meaning if the accident loss is relatively minor or based on liability apportionment, I have to pay a portion out of pocket—like 5% or 20%, depending on the policy terms. Additionally, certain situations aren't covered at all. For instance, if I was driving under the influence or if vehicle modifications caused the accident, the insurer might outright deny the claim. Vehicle damage insurance mainly covers risks like collision accidents, fire, and theft, but natural disasters such as floods or earthquakes are rarely fully covered unless you purchase additional riders. I recommend adding a zero-deductible rider when buying vehicle damage insurance, as this can ensure near-full coverage in most cases, avoiding extra expenses. Don’t forget to read the contract carefully and consult your insurance advisor to avoid unexpected losses like I did.
