What is Auto Damage Insurance in Car Insurance?
2 Answers
Auto Damage Insurance refers to motor vehicle damage insurance, which is a commercial vehicle insurance that provides compensation when the insured vehicle suffers damage due to traffic accidents or natural disasters, provided the damage falls within the coverage scope of the insurance policy. This insurance covers the motor vehicle itself, but not all vehicle damage scenarios are eligible for compensation. Relevant information about Auto Damage Insurance is as follows: Items covered by Auto Damage Insurance: Vehicle Collision: Damage caused by collisions with external objects while driving can be reimbursed. However, violations of traffic regulations such as drunk driving or driving without a license are not covered by Auto Damage Insurance. Unavoidable Natural Disasters: Damage caused by natural disasters such as lightning, storms, tornadoes, heavy rain, floods, tsunamis, cliff collapses, avalanches, hailstorms, mudslides, landslides, etc., as well as fires and explosions. Vehicle Damage Caused by External Factors: Such as damage caused by falling trees, building collapses, etc. Auto Damage Insurance is a type of commercial vehicle insurance that stipulates the insurance company should compensate within a reasonable range when the insured or an authorized driver causes damage to the insured vehicle during an insured accident. Calculation Method for Auto Damage Insurance: The calculation of Auto Damage Insurance is based on the basic premium plus the purchase price of the new vehicle multiplied by the rate. Currently, there are three forms of Auto Damage Insurance: coverage based on the new vehicle purchase price, coverage based on the actual value of the vehicle, and coverage based on a mutually agreed price.
Vehicle Damage Insurance is a type of coverage you can purchase when buying auto insurance, specifically designed to compensate for the loss or damage to your own car. For instance, if your car gets damaged in an accident, the insurance company will cover the costs to repair it or replace parts. This not only saves you a significant amount on repair expenses but also provides peace of mind while driving. As someone who has driven for over a decade, I once rear-ended another car on a rainy day due to slippery roads, and it was the Vehicle Damage Insurance that covered the tens of thousands in repair costs—without it, the situation would have been dire. It covers collisions, rollovers, natural disasters like flooding, but excludes intentional damage or normal wear and tear. When buying insurance, I recommend opting for this coverage because it’s affordable and practical, especially for new car owners who should prioritize it. Regularly reviewing the policy terms can help avoid unexpected financial setbacks.
