What Does Vehicle Damage Insurance Mean?
2 Answers
Vehicle Damage Insurance refers to a type of commercial auto insurance where the insurer compensates the policyholder or an authorized driver within reasonable limits for damages to the insured vehicle caused by an accident while driving. This insurance primarily covers losses from single-vehicle accidents but excludes damages like standalone glass breakage or losses incurred while the vehicle is parked. There are three forms of Vehicle Damage Insurance: 1. Coverage based on the new car purchase price; 2. Coverage based on the actual value of the vehicle; 3. Coverage based on a mutually agreed price. Most major insurance companies adopt the first form because, unlike the first form which offers full compensation, the latter two forms provide proportional compensation.
Auto damage insurance is the coverage that protects your own car. I've been driving for almost ten years, and it has helped me avoid major troubles several times. Simply put, if an accident or a natural disaster like flooding damages your car, the insurance company will cover the repair costs, saving you the pain of paying out of pocket. The premium isn’t cheap, but it’s worth it compared to repair expenses—for example, when I backed into a utility pole, the insurance covered the thousands in repairs. I recommend opting for it when buying a car, especially for new vehicles or high-risk driving routes. Don’t wait for an accident to regret it; make sure to clarify the policy terms and what scenarios are covered for real peace of mind. After all, no one wants accidents, but this insurance is our safety net.
