What Type of Insurance is the No-Deductible Coverage for Cars?
1 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.