If you're a car lover, you'll want to buy insurance for your car in case of an accident that causes damage to your vehicle. However, do you know what is the most important cost of car damage insurance in vehicle insurance? How is car damage insurance** calculated? What are the factors that affect the rate of car damage insurance? This article will unravel the mystery of the cost of car damage insurance, so that you can be aware of it when buying car damage insurance, saving money and worry.
1. What is car damage insurance?
Vehicle damage insurance, the full name of motor vehicle loss insurance, refers to a kind of insurance in which the driver of a motor vehicle causes direct losses to the insured motor vehicle due to natural disasters and accidents during the use of the insured motor vehicle during the insurance period, and does not fall within the scope of exempting the insurer from liability, and the insurer is responsible for compensation in accordance with the provisions of this insurance contract.
Car damage insurance is the main insurance in commercial auto insurance, and it is also the most widely used type of insurance in vehicle insurance. Whether the insured vehicle is due to natural factors such as lightning strikes, storms, tornadoes, heavy rains, floods, tsunamis, subsidence (but not including **), or due to accidents that cause the insured vehicle to suffer small scratches or serious damage, the owner can apply to the insurance company for compensation.
2. What is the charging standard of car damage insurance?
The charging standard of car damage insurance is mainly determined by the following aspects:
How old and new the vehicle is. In general, the premium for damage insurance is higher for a new car than for an old car because the new car is more valuable and the repair costs are higher. The newness of a vehicle can be measured by the age of the vehicle and the depreciation rate. The depreciation rate refers to the proportion of the decline in the value of the vehicle each month, different models have different depreciation rates, and generally speaking, the depreciation rate of family cars is lower than that of commercial cars. The specific value of the depreciation rate can be referred to the following table:
The size of the vehicle's displacement. Generally speaking, the larger the displacement of the vehicle, the higher the damage insurance premium, because the maintenance cost of the vehicle with a larger displacement is also higher. The displacement of the vehicle can be divided by the number of seats of the vehicle, generally speaking, vehicles with less than 6 seats belong to small displacement, vehicles with 6-10 seats belong to medium displacement, and vehicles with more than 10 seats belong to large displacement. Vehicles of different displacements have different base premiums and rates, which can be referred to in the table below:
The risk profile of the vehicle. Generally speaking, the higher the risk of the vehicle, the higher the premium of the car damage insurance, because the higher the risk of the vehicle is more likely to be involved in accidents and the probability of compensation is higher. The risk profile of a vehicle can be measured by the owner's driving record and accident record. If the owner has not had any violations or accidents in the previous year, then he can enjoy a certain discount when renewing the policy, and conversely, if the owner has had a violation or accident, then a certain floating rate may be charged at the time of renewal. The specific values of the preferential discount and floating rate can be found in the table below
Based on the above three aspects, the charging standard of car damage insurance can be calculated using the following formula:
Car Damage Insurance Premium = (Base Premium + Vehicle Acquisition Price Rate) Preferential Discount or Variable Rate.
Where the purchase price of the vehicle = the price of the naked car + the purchase tax
For example,The price of a naked car is 150,000 yuan, and the purchase tax is 750,000 yuan, the service life is 2 years, the number of seats is 5, and the vehicle that has not been insured in the previous year has a car damage insurance premium of:
Car Damage Insurance Premium =（272 + 225000 × 0.009）× 0.85 = 1978.$5
3. Precautions for car damage insurance
When purchasing car damage insurance, car owners also need to pay attention to the following:
There is an upper limit on the amount of compensation for car damage insurance, which is generally the actual value of the vehicle, which is the purchase price of the vehicle minus depreciation. If the cost of repairing the vehicle exceeds the actual value, then the insurance company will only pay according to the actual value, and the owner needs to pay the excess by himself. Therefore, when purchasing car damage insurance, car owners should choose the appropriate amount of insurance according to the actual value of the vehicle and the cost of maintenance, so as to avoid overinsurance or underinsurance.
There are two ways to pay for car damage insurance, one is cash payment and the other is repair claim. Cash compensation means that the insurance company pays a certain amount of compensation directly to the car owner, and the car owner chooses the repair method and location. Repair claim payment means that the insurance company designates or negotiates the repair method and place, and the insurance company directly pays the repair cost. Generally, the amount of the cash benefit will be lower than the amount paid for the repair claim, because the insurance company will take into account the discount and savings on the cost of the repair. When purchasing car damage insurance, car owners should choose the payment method according to their preferences and needs, and pay attention to the relevant terms and agreements in the insurance contract.
There are certain restrictions on the payment conditions of car damage insurance, and not all vehicle losses can be covered. When purchasing car damage insurance, car owners should carefully read the liability exclusion clauses in the insurance contract to understand the circumstances under which the insurance company will not be liable for compensation. For example, if the damage to the vehicle is caused by the intentional behavior of the owner, drunk driving, driving without a license, illegal driving, overloading and speeding, failure to inspect or maintain according to regulations, etc., then the insurance company has the right to refuse to pay. In addition, if the loss of the vehicle is caused by force majeure factors such as war, riots, strikes, nuclear **, etc., then the insurance company will not be liable for compensation.
Conclusion
Car damage insurance is the most common and important type of vehicle insurance, which can effectively protect the property safety of car owners and reduce the economic pressure caused by vehicle loss. When purchasing car damage insurance, car owners should choose the appropriate amount of insurance and compensation according to their own vehicle conditions and insurance needs, and at the same time pay attention to the liability exemption clause in the insurance contract to avoid the situation that cannot be paid. Hopefully, this article can help you better understand the charging standards of car damage insurance, so that you can be clear, safe and comfortable when buying car damage insurance.