What does the absolute rate of vehicle damage insurance mean?
1 Answers
Vehicle damage insurance absolute rate refers to the absolute deductible, which means the amount of loss that the insured must bear before the insurer makes a payment according to the insurance conditions. In commercial motor vehicle insurance, the deductible is usually reflected in the form of an absolute deductible. Generally, this deductible applies to each loss. Additional information: 1. The significance of the absolute deductible: Establishing an absolute deductible helps reduce the moral hazard of the insured. The absolute deductible is different from the relative deductible. Each time an insured event occurs to the subject matter of insurance, the insured must bear the corresponding cost. Therefore, to some extent, establishing an absolute deductible can urge drivers to drive carefully and reduce the probability of insured accidents. 2. Deductible amount: New drivers, due to their lack of driving skills, are more likely to have minor collisions during driving, so they can choose a lower-level absolute deductible, but they will have to pay more in premiums accordingly. Experienced drivers with many years of driving experience have proficient driving skills and are less likely to have minor collisions during driving, so they can pay relatively cheaper premiums and choose a higher-level absolute deductible.
