What does 'No Deductible' mean?
3 Answers
No Deductible typically refers to the No Deductible Coverage in vehicle insurance, which is an additional coverage to commercial insurance (such as Vehicle Damage Insurance or Third-Party Liability Insurance). The No Deductible Coverage means that if the insured vehicle, covered under Vehicle Damage Insurance and Third-Party Liability Insurance, is involved in an accident within the scope of insurance liability, resulting in vehicle damage (excluding theft) or third-party liability compensation, the insurer will be responsible for compensating the amount stipulated in the 'Terms'. Additional Information: There are several situations where the No Deductible Coverage does not apply: 1. When compensation should be made by a third party but the third party cannot be found. 2. When the insured resolves the traffic accident on their own but cannot determine the cause of the accident: For example, if two vehicles have a scrape, and after negotiation, they move to the roadside but do not retain photos or marks of the original position, and neither party can provide clear evidence or cause when reporting the incident, then even if No Deductible Coverage is purchased, full compensation cannot be obtained. 3. Frequent claims: If claims are made too frequently, even with No Deductible Coverage, the insurance company may still require the policyholder to bear certain losses as a penalty for such risky and abnormal behavior.
Let me talk about the 'No Deductible' insurance option. Basically, it means that in auto insurance, if you purchase this additional coverage, the insurance company will fully compensate for all losses in the event of a claim, without requiring you to pay the deductible portion out of pocket. Let me share a personal experience: once I rear-ended another car, and the damages came to 5,000 yuan. At that time, I didn’t have the No Deductible coverage, so I had to pay 800 yuan out of pocket. Later, I added this option, and when I had another minor accident, the insurance company covered the full amount. Overall, this option is suitable for those with sufficient budgets or those driving new cars, as it reduces the financial pressure from unexpected expenses, though the premium will increase accordingly. I must say it’s especially useful for new drivers or those who frequently drive long distances. I recommend consulting with an agent to understand the details when purchasing auto insurance, and not overlooking this option lightly.
Speaking of zero deductible, I understand it from a cost-saving perspective. Simply put, it's an additional insurance option that covers the fixed deductible portion during claims, leaving the insurance company to handle everything. For example, after experiencing several minor collisions myself, not having it meant paying hundreds out of pocket, which was painful plus the hassle of repairs. After purchasing it, a major repair saved me over 2,000 yuan. The key is that it eliminates financial risks, especially offering protection for mid-to-high-end car owners or those frequently driving in accident-prone areas. Although the premium increases slightly, it helps avoid larger losses, which I find quite worthwhile. When maintaining your car, don't forget to assess risks and choose based on driving habits rather than blindly following trends.
