What is Vehicle Damage Insurance?
2 Answers
Vehicle Damage Insurance refers to a type of commercial auto insurance where the insurance company compensates within a reasonable range for damages to the insured vehicle caused by an insured accident while the vehicle is being used by the insured or an authorized driver. Vehicle Damage Insurance and Third-Party Liability Insurance are the basic types of vehicle insurance, primarily covering the loss of the insured vehicle and the losses caused to third parties by the insured vehicle during its use. 1. Scope of Coverage: The insurer is responsible for compensating for the loss of the insured vehicle caused by the following reasons while the vehicle is being used by the insured or an authorized driver. 2. Methods of Determining Coverage Amount: There are three ways to determine the coverage amount for Vehicle Damage Insurance: determining the coverage amount based on the new car purchase price, determining the coverage amount based on the actual value at the time of insurance, or determining the coverage amount through negotiation between the policyholder and the insurance company.
Simply put, car damage insurance is a type of coverage that protects your beloved vehicle. If your car suffers accidental damage, the insurance can help cover the repair costs. With over 20 years of driving experience, I deeply appreciate its value. For instance, once I accidentally drove into a pothole and scraped the undercarriage—the insurance covered over 5,000 yuan in repair fees, saving me from a major financial hit. It also covers risks like collision accidents, fire, and theft, but be sure to check the policy for exclusions like natural disasters such as floods. Premiums are based on the car's value and driving history. My advice: new car owners should opt for comprehensive coverage, while older vehicles can scale back to save money. The key benefit is peace of mind—daily commutes feel less stressful knowing you won’t face sudden financial blows from accidents. Especially for fast-depreciating new cars, insurance helps preserve value. Don’t repeat my friend’s mistake of skipping it to save money, only to regret emptying his wallet after a minor accident. Always compare multiple insurers for better service when buying car insurance.
