What is the difference between motor vehicle loss insurance and car damage insurance?
2 Answers
There is no difference between motor vehicle loss insurance and car damage insurance; car damage insurance is the abbreviated term for motor vehicle loss insurance. The following are not covered under car damage insurance: Earthquake: Most property insurance does not cover earthquakes, and earthquake coverage is also excluded from auto insurance clauses. Mental distress: Most insurance clauses have similar provisions, as insurance companies lack a standardized method for assessing mental harm. Any compensation related to mental distress caused by an insurance incident is considered excluded from coverage. Drunk driving, unlicensed driving, or driving without an annual inspection: In these cases, the driver does not qualify to operate the vehicle on the road, which is a serious violation of traffic laws. Additionally, situations such as the driver not matching the permitted vehicle type or driving on highways during the probationary period will also result in the insurance company refusing to compensate. Damage caused by restarting the engine after water ingress: If the vehicle is driven into deep water, and the engine stalls, then the driver forcibly restarts it, causing damage, this is considered improper operation and is not covered under compensation. Theft of certain parts: Insurance companies typically stipulate that "partial theft, where only vehicle parts or accessories are stolen, robbed, snatched, or damaged" is an exclusion. Tire blowout: Damage to car tires alone is not covered by insurance. However, if a tire blowout leads to a collision, rollover, or other accidents causing damage to other parts of the vehicle, the insurance company will be responsible for compensation.
After driving for over a decade, I finally realized that Motor Vehicle Damage Insurance and Auto Damage Insurance are actually the same thing. Insurance companies like to use different names, but in reality, both cover situations where your own car is damaged in a collision, overturns, or gets hit by hail. Once, my buddy's policy was labeled as Motor Vehicle Damage Insurance, while mine was Auto Damage Insurance, but the claims process was exactly the same when we filed. An important reminder is that both terms fall under commercial insurance, separate from the compulsory traffic insurance. There's no need to get hung up on the specific name—what matters is the details of the coverage for natural disasters and accidents in the contract. Newcomers can easily get confused by the terminology, but just remember this covers your own car's repair costs.
