What Does Comprehensive Vehicle Damage Insurance Cover?
2 Answers
Comprehensive vehicle damage insurance refers to coverage where the insurer compensates within reasonable limits for damages to the insured vehicle caused by an accident while being driven by the policyholder or an authorized driver. Related details: 1. Overview: Vehicle damage insurance is a type of commercial auto insurance that covers damages to the insured vehicle resulting from an accident during its use by the policyholder or an authorized driver, with compensation provided by the insurer within reasonable limits. 2. Expansion: Vehicle damage insurance and third-party liability insurance are fundamental auto insurance policies, primarily covering losses to the insured vehicle and damages caused to third parties by the insured vehicle during use.
Vehicle Damage Insurance, in simple terms, refers to the insurance that covers the repair costs when your car is damaged due to an accident. I purchased this insurance right after buying my car. If I accidentally hit a roadside tree or railing while driving, or if a rear-end collision causes damage to the car's body or engine issues, the insurance company will compensate for the repair costs according to the contract. However, it's not all-encompassing—it only covers direct losses caused by accidents, excluding things like tire wear and routine maintenance. There's also the deductible issue, where you have to pay a small portion of the cost for each accident, such as 500 or 1,000 RMB, which helps lower the premium. Natural disasters like flooding or earthquakes aren't covered by standard Vehicle Damage Insurance; you'd need to pay extra for comprehensive coverage. It's advisable for car owners to carefully review the policy terms and choose coverage amounts based on their daily driving conditions, so they're prepared in case of an incident.
