What are the situations where auto damage insurance does not cover?
3 Answers
Auto damage insurance does not cover the following situations: 1. Driving without a license: 1.1 No driver's license or the driver's license has expired. 1.2 The insured vehicle being driven does not match the vehicle type specified on the driver's license. 1.3 Driving the insured vehicle with a driver's license that has not been reviewed as required, or driving during the period when the license is temporarily suspended, detained, revoked, or canceled. 1.4 Driving the insured vehicle under any other circumstances not permitted by laws, regulations, or the relevant provisions of the traffic management department of the public security organ. 2. Drunk driving: Driving under the influence of alcohol is a serious violation of the "Road Traffic Management Regulations" and is also one of the major causes of traffic accidents. The insurance company will not be liable for compensation for the loss of the insured vehicle caused by drunk driving. 3. Damage caused by restarting the engine after water ingress: The insurance company considers that if the vehicle is driven into deep water, the engine stalls, and the driver forcibly restarts the engine causing damage, it is due to improper operation and is not covered by the insurance. 4. Intentional acts: Refers to the behavior of the insured or the driver deliberately damaging or instructing others to damage the insured vehicle (such as intentionally burning the vehicle or pushing it off a cliff). Any damage to the insured vehicle caused by intentional acts will be rejected for compensation by the insurance company. 5. Illegal activities: Refers to the use of the insured vehicle as a tool for criminal activities, such as smuggling, drug trafficking, or illegal goods trafficking. Any damage to the insured vehicle caused by illegal activities will not be covered by the insurance company.
Having driven for over a decade, my experience tells me that auto damage insurance often doesn't pay out. For example, if you intentionally crash your car to damage the body and commit insurance fraud, the insurer will definitely deny your claim once they find out. Drunk driving accidents or driving without a license will also result in outright rejection due to illegal operations. Natural disasters like earthquakes or floods are generally not covered by basic auto damage insurance unless you purchase additional riders—I learned this the hard way when my garage almost flooded during heavy rain. Major events like wars or riots are obviously excluded too. Moreover, natural wear and tear over time, such as engine failure after years of use, won't be compensated—you'll have to pay for repairs yourself. Poor maintenance leading to part failures (e.g., not replacing worn tires causing accidents) also voids claims. Bottom line: follow traffic laws, avoid cutting corners, or you'll waste premiums and face bigger losses. Understanding policy details saves headaches.
I understand that auto damage insurance has many details, and there are often non-payment situations: First, intentional acts, such as smashing your own car to commit insurance fraud, are definitely not covered. Second, accidents caused by unlicensed driving or drunk driving will be exposed once the police arrive. Third, natural disasters like earthquakes and floods are not covered unless you purchase additional natural disaster insurance. Fourth, normal wear and tear of the vehicle, such as replacing brake pads when they wear out, will not be compensated. Fifth, war and terrorist events are not covered by anyone. Additionally, failing to report a stolen vehicle within 24 hours will result in no compensation. Illegal modifications causing issues, such as short circuits from installing extra headlights that burn out wiring, will also be denied. Accidents occurring in areas not covered by the insurance policy require checking the policy before traveling. Poor maintenance leading to engine failure is also not covered, so regular inspections are necessary. Remember to read the policy terms carefully when purchasing insurance and don’t overlook the fine print, otherwise, you’ll suffer big losses when accidents happen.
