What Does Vehicle Damage Insurance Mean?
2 Answers
Vehicle Damage Insurance is a type of commercial auto insurance where the insurer compensates within reasonable limits for damage to the insured vehicle caused by an accident while being driven by the policyholder or an authorized driver. The insured amount for Vehicle Damage Insurance can be determined based on the insurance value or actual value at the time of purchase, or negotiated between the policyholder and the insurer, but the insured amount must not exceed the insurance value. The following causes may result in compensation under Vehicle Damage Insurance: 1. Collision, overturning, falling; 2. Fire, explosion, spontaneous combustion; 3. Falling or collapsing of external objects; 4. Storm, tornado; 5. Lightning, hailstorm, heavy rain, flood, tsunami; 6. Ground collapse, ice collapse, cliff collapse, avalanche, mudslide, landslide; 7. Natural disasters affecting the ferry transporting the insured vehicle (limited to cases where the driver is accompanying the vehicle).
Vehicle Damage Insurance is essentially coverage that protects your own car from issues. It primarily compensates for losses to your own vehicle caused by accidents, collisions, fires, or theft. For example, if you hit a guardrail on the road or your car gets scratched by another vehicle while parked, the insurance company will cover the repair costs. Having driven for over a decade, I find this type of insurance quite practical, especially for owners of new or high-value cars, as repairing your own vehicle after an accident could cost a significant amount. I remember one time when my car was broken into, and all the windows were shattered—fortunately, I had Vehicle Damage Insurance, so it didn’t cost much to fix. However, some terms in the policy require attention, such as additional conditions for natural disasters like floods. Overall, spending a bit on premiums for peace of mind is worthwhile, as it saves you from bearing the risk of huge losses. I recommend opting for this insurance when buying a car, pairing it with Third-Party Liability Insurance for more comprehensive coverage.
