What Does the Coverage of Auto Insurance Collision Damage Include?
3 Answers
Collision damage coverage compensates for the loss of the insured vehicle caused by the following reasons while being used by the insured or an authorized driver: collision, falling, overturning; explosion, fire, spontaneous combustion; falling or collapse of external objects; floods, tsunamis, heavy rain, lightning, hailstorms, storms, tornadoes, ground collapse, ice collapse, cliff collapse, avalanches, mudslides, earthquakes; natural disasters affecting the ferry carrying the insured vehicle (limited to the driver being present and taking care). In the event of an insured incident, the necessary and reasonable rescue expenses paid by the insured to prevent or reduce the loss of the insured vehicle will be borne by the insurer, up to the insured amount. Under the following circumstances, regardless of the cause, the insurer will not be responsible for compensating the loss of the insured vehicle: Vehicle damage coverage exclusions: war, military conflict, terrorist activities, riots, seizure, confiscation, government requisition; competitions, tests, during repair or maintenance at commercial service centers; using the insured vehicle for illegal activities; driving under the influence of alcohol, drugs, or narcotics; hit-and-run involving the insured vehicle; drivers under any of the following conditions: without a valid driver's license or driving a vehicle not matching the license class; driving without a valid license as defined by traffic authorities; operating specialized or special vehicles without a valid operation certificate issued by relevant national authorities; driving commercial passenger vehicles without a valid qualification certificate issued by relevant national authorities. Use of the insured vehicle by a driver not permitted by the insured; the insured vehicle lacking valid driving documents.
Last year, I had to use my own car’s damage insurance after a rear-end collision. Simply put, this insurance covers the repair costs for your own vehicle. It definitely covers single-vehicle accidents like scraping against guardrails or hitting a tree. Natural disasters such as a tree falling on your car during a typhoon or hail denting your roof are also included. A friend of mine drove into a waterlogged pit during heavy rain, resulting in a totaled engine, and the insurance company replaced it after assessment. However, it’s important to note that modified parts like aftermarket headlights or audio systems usually aren’t covered. If you’re hit by someone who flees the scene, the insurance company will deduct a 20% no-claim excess. Every year when renewing my insurance, I make sure the coverage amount for car damage matches the car’s value, as this significantly impacts the payout limit.
Auto Damage Insurance primarily covers the repair costs of your own vehicle. It is specifically divided into three types of claim scenarios: first, accident-related damages such as scratches and rear-end collisions; second, natural disaster-related damages, including being submerged by floods or damaged by earthquakes; third, accidental losses, such as the entire vehicle being stolen or destroyed by fire. I have studied the terms, and situations like separate wheel damage, loss of luggage in the vehicle, or damage to modified parts are excluded from coverage. After an accident, remember to first report to the police for liability determination, keep proof of meteorological disasters, and file a claim with the insurance company within 48 hours. Many beginners are unaware that there is a separate add-on insurance for body scratches, as ordinary Auto Damage Insurance does not include this.
