What does replacement vehicle insurance mean?
1 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.
