Why is the non-deductible clause for third-party liability in auto insurance no longer available?
1 Answers
The non-deductible clause is no longer charged separately but has been incorporated into the auto insurance coverage. According to the 'Guiding Opinions on the Implementation of Comprehensive Auto Insurance Reform,' under the principle of not significantly increasing consumers' premium expenditures, the industry is supported in expanding the scope of commercial auto insurance liability coverage. The industry is guided to include the main clauses of the motor vehicle demonstration product's vehicle damage insurance in the existing insurance liability coverage. Below is a detailed introduction to commercial auto insurance: 1. Vehicle Damage Insurance: Covers losses caused by natural disasters and accidents to the vehicle itself. Recommended for new drivers. 2. Third-Party Liability Insurance: Covers losses caused by the policyholder to third-party personal injuries or deaths. This is mandatory as it provides protection for both the policyholder and others. 3. Non-Deductible Clause: An additional insurance that transfers the policyholder's liability to the insurance company, reducing the policyholder's losses. It is advisable to purchase this if both Vehicle Damage Insurance and Third-Party Liability Insurance are bought. 4. Theft and Robbery Insurance: Covers damages caused by theft, robbery, or hijacking of the vehicle. Recommended for owners without a garage. 5. Passenger Liability Insurance: Covers losses suffered by the driver and passengers due to traffic accidents. Premiums are usually paid per seat. Recommended for new drivers or family vehicles. 6. Spontaneous Combustion Insurance: Covers losses caused by fires due to the vehicle's own electrical or wiring issues. Suitable for older vehicles. 7. Glass Breakage Insurance: Covers the separate breakage of windshield and window glass. Since replacing glass can be very expensive, it is recommended for vehicles frequently driven in unsafe areas. 8. Scratch Damage Insurance: Covers losses caused by intentional, malicious, or accidental scratches during driving.
