What is a simple and easy-to-understand explanation of non-deductible coverage?
1 Answers
Non-deductible coverage, in simple terms, transfers the 20% liability loss to the insurance company. It provides the policyholder with maximum protection in traffic accidents and supplements many current commercial insurance policies. After purchasing the coverage, the car owner can not only enjoy the portion of compensation that should be borne by the insurance company according to the insurance terms but also receive compensation for the amount that should be borne by the car owner due to their responsibility in the accident. Below is a detailed introduction to non-deductible coverage: 1. Introduction: Non-deductible coverage, officially known as non-deductible liability insurance, is an additional coverage for vehicle damage or third-party liability (meaning it cannot be purchased separately without the primary coverage). 2. Non-covered situations: (1) Additional deductible rate: The additional deductible rate does not involve the deductible amount that the car owner should bear due to accident liability, making the non-deductible coverage invalid. (2) Additional coverage deductible rate: Non-deductible coverage only applies to the deductible rates of third-party liability insurance and vehicle damage insurance, transferring the deductible rate that the car owner should bear due to accident liability to the insurance company. However, additional coverages cannot interact with each other, meaning non-deductible coverage cannot transfer the deductible rates of theft insurance, spontaneous combustion insurance, or no-fault liability insurance to the insurance company.
