What Type of Insurance is the No-Deductible Coverage for Cars?
3 Answers
The no-deductible coverage for cars is a type of commercial insurance, with the full name being "No-Deductible Rate Special Clause." It is an additional coverage that requires a primary insurance policy when purchasing and cannot be bought separately. The no-deductible coverage transfers the portion of the compensation that the driver would otherwise have to bear in a traffic accident to the insurance company. However, the no-deductible coverage does not apply in all situations and is subject to certain rules. If the other driver cannot be found after an accident, such as in cases of hit-and-run without police record, the no-deductible coverage cannot be used. If a car is involved in multiple accidents within a short period requiring compensation, the insurance company will not cover the claims, as it may be suspected as an attempt to fraudulently obtain insurance benefits. However, in practice, it is rare for accidents to occur consecutively. Self-settled traffic accidents. If both parties involved in an accident reach a compensation agreement through negotiation without preserving evidence of the accident, the no-deductible coverage will not take effect.
I've been driving for over a decade, and the "No Deductible" insurance is truly the practical choice in auto insurance! Originally, it served as the perfect complement to vehicle damage insurance and third-party liability insurance, functioning as an add-on. For example, if you rear-end someone and are fully liable for damages totaling 10,000 RMB, the insurance company might only cover 9,000 RMB according to the contract, leaving you to pay the remaining 1,000 RMB out of pocket. However, with the No Deductible insurance, the insurer covers that 1,000 RMB for you. Last year, my neighbor scraped a wall while reversing, incurring 8,000 RMB in repair costs. Because they didn’t have this coverage, they had to pay 1,600 RMB themselves. After the recent insurance reform, it’s now included in the main policy, but its function remains unchanged—it’s still a must-have!
Just finished researching auto insurance policies. The 'no deductible' coverage is essentially an add-on under commercial auto insurance. Traditionally classified as an accessory to main coverage, its primary function is to cover losses from the insurance deductible portion. For example, in a traffic accident where you bear 20% liability, insurers typically only cover 80% of the loss. But with no-deductible coverage, the remaining 20% can also be claimed. Special reminder for new car owners: After the 2020 premium reform, it has been incorporated into the scope of auto damage insurance, but still requires separate purchase when buying third-party liability insurance. It may not be useful for minor scratches, but can save significant money in major accidents.
