What is the purpose of non-deductible insurance?
2 Answers
Non-deductible insurance eliminates the deductible amount in auto insurance. Generally, auto insurance policies have a deductible, meaning the insurance company will not compensate for losses within the specified amount. Below are detailed explanations about non-deductible insurance: 1. Definition: The full name of non-deductible insurance is "Special Clause for Non-Deductible Rate," which is an additional coverage to either vehicle damage insurance or third-party liability insurance. Through special agreement, after an accident occurs, the insurance company will be responsible for compensating the deductible amount that the policyholder would otherwise have to bear, calculated based on the deductible rate stipulated in the corresponding main insurance clause, within the liability limit. 2. Non-applicable situations: It does not apply to cases of intentional vehicle damage or hit-and-run accidents; If a car is involved in multiple accidents within a short period requiring compensation, the insurance company will not settle the claim but will initiate an investigation as it may involve insurance fraud; In accidents involving two motor vehicles where both parties reach a compensation agreement through negotiation and resolve the matter themselves without preserving evidence of the accident, the non-deductible insurance will not take effect.
When I bought insurance before, I specifically asked about the no-deductible coverage. It's an add-on to either the vehicle damage insurance or third-party liability insurance, and it's quite practical. Once, I scratched someone else's car, and the repair cost was 20,000 yuan. According to the third-party liability insurance terms, I had a 15% deductible and had to pay 3,000 yuan myself. But with this add-on, the 3,000 yuan was also covered by the insurance company. It specifically targets the deductible and deductible rate in the insurance terms. For example, in vehicle damage insurance, there's a 20% deductible rate for vehicle theft or robbery, and a fixed deductible for minor accidents—this coverage can handle all of that. The premium is usually about 15% of the main insurance, but it can save you a lot of money in critical moments.
