What types of coverage are not included in Vehicle Damage Insurance?
3 Answers
Vehicle Damage Insurance includes the following types of coverage: vehicle damage insurance, spontaneous combustion insurance, glass insurance, theft insurance, no-deductible insurance, engine water damage insurance, and third-party liability insurance for unidentified parties. The calculation formula for Vehicle Damage Insurance: Basic premium + new vehicle purchase price × rate. Vehicle owners can also opt for underinsurance, which reduces the premium but also lowers the coverage. The difference between Vehicle Damage Insurance and Third-Party Liability Insurance: Vehicle Damage Insurance primarily covers damage to the insured vehicle itself, while Third-Party Liability Insurance covers bodily injury or property damage caused to a third party by the insured's use of the insured vehicle. These two types of insurance are strictly distinct, but neither includes coverage for the driver themselves.
As an average car owner with several years of driving experience, I've learned that vehicle damage insurance mainly covers losses to your own car, such as collisions, flooding, or accidental damage. However, it indeed excludes several common coverage types. Firstly, it doesn't include third-party liability insurance, meaning if you hit someone or damage others' property while driving, the insurer won't cover those losses—this requires separate purchase. Secondly, theft insurance is also excluded. If your car gets stolen or hijacked, you'd face significant losses, especially new car owners should seriously consider adding this. Passenger liability insurance is another standalone coverage—if passengers get injured in an accident, vehicle damage insurance won't cover their medical expenses. Additional exclusions include standalone glass breakage insurance and deductible waiver insurance, the latter reducing your out-of-pocket deductible amounts. Essentially, vehicle damage insurance is designed this way—it only covers the car itself, requiring supplementary insurance for other risks. I recommend thoroughly consulting your insurer when purchasing auto insurance to add necessary riders for peace of mind. Don't risk major problems to save small amounts—safety should always come first.
I've been driving for quite a long time and have experienced many accidents. The core coverage of vehicle damage insurance is physical damage to the vehicle, but it does not include critical parts such as third-party liability insurance, theft insurance, and passenger liability insurance. Third-party liability insurance is crucial for compensating others when handling accidents, and the legal risks are significant if it's not covered; theft insurance deals with the threat of car theft, which still happens frequently nowadays; passenger insurance protects the safety of passengers, especially necessary during family trips. Additionally, specialized insurances like glass insurance or spontaneous combustion insurance must be purchased separately, otherwise, if only the glass is broken, it won't be covered. Why doesn't vehicle damage insurance include these? Because insurance companies categorize risks, and basic insurance only covers the vehicle's own loss. Purchase advice: Choose additional insurance based on driving habits, such as prioritizing third-party insurance if you often drive at night or in crowded areas, and don't skimp on coverage just to save money.
