What is the compensation ratio for water-damaged vehicles?
1 Answers
Compensation is based on the actual repair costs within the insured amount. However, if the cumulative compensation during the insurance period reaches the insured amount, the insurance liability terminates. Each claim under the water damage insurance is subject to a 20% absolute deductible rate. The coverage of water damage insurance includes: During the insurance period, if the insured vehicle covered by water damage insurance suffers direct engine damage due to water ingress, the insurance company is responsible for compensation; 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 insurance company; The rescue expenses are calculated separately from the compensation amount for the insured vehicle's loss, with a maximum not exceeding the insured amount. If the no-deductible coverage is not purchased, full compensation is not possible. Typically, water damage insurance has a deductible rate of 15%-20%, meaning the insurance company only compensates 80%-85% of the vehicle's loss amount, and the remaining portion must be covered by the vehicle owner. For example, if replacing an engine costs 100,000 yuan, the owner would need to pay 20,000 yuan out of pocket. If the no-deductible coverage is purchased, when the vehicle meets the conditions for water damage insurance compensation, the full loss of a 200,000 yuan water-damaged vehicle can be compensated by the insurance company, and the owner does not need to pay out of pocket. Typically, the premium for water damage insurance is about 5% of the vehicle insurance premium. For a 100,000 yuan-level car, the annual premium for water damage insurance is approximately 100 yuan; for a 1,000,000 yuan car, the annual premium is about 500 yuan.
