What does replacement vehicle insurance mean?
2 Answers
Replacement vehicle insurance refers to the coverage for expenses related to a temporary replacement vehicle. Below is an introduction to replacement vehicle expense insurance: Type of Coverage: Replacement vehicle expense insurance is an additional coverage under auto damage insurance. It can only be purchased if the vehicle is already insured under auto damage insurance. During the insurance period, if the insured vehicle is damaged due to an accident covered under the first clause of the auto damage insurance policy, requiring it to be repaired in a workshop, the insurer will cover the rental expenses for a replacement vehicle incurred by the policyholder, up to the limit specified in the insurance contract. Expense Documentation: During the insurance period, the compensation days are calculated cumulatively, with the total compensation days not exceeding the maximum number of days specified in the policy. For partial losses, the compensation is calculated by multiplying the daily compensation amount specified in the policy by the actual number of days from the date the vehicle is sent for repair and handed over until the date it is fully repaired and retrieved. For total losses, compensation is calculated based on the maximum number of compensation days specified in the policy.
I usually commute by car a lot, and the substitute vehicle insurance is an additional option in car insurance. It means that when your car is being repaired after an accident, the insurance company will cover the cost of renting a car or taking a taxi, so you have a temporary vehicle and your life isn’t disrupted. For example, last year I was in a rear-end collision, and my car was in the shop for five days. The substitute vehicle insurance reimbursed me over 100 yuan per day for car rental, which really helped in a pinch. You can add it to your insurance for a small fee, with coverage options ranging from low to high, enough to cover repairs lasting ten days or even half a month. I’ve also found this particularly helpful for office workers, saving them from taking unpaid leave or dealing with public transport, keeping their daily routine intact. Just make sure to read the insurance terms carefully to avoid omissions, such as deductibles. In short, I recommend adding it when buying car insurance—it saves a lot of hassle when accidents happen.
