4 things to know when buying auto physical damage insurance

1. Insurance against water hammer and flood disasters

Insurance against water hammer or flooding due to natural disasters is one of the important items to choose when buying physical insurance for cars. Especially in big cities where flooding often occurs, it cannot be ignored. Because if your car is unfortunately damaged by water or flooding, the cost of replacement and repair when the car is damaged is quite large...

However, not all insurance companies provide this insurance service, so before buying you should ask carefully whether they include this insurance service.

2. Compensation depreciation and spare part replacement costs

When purchasing physical insurance for cars, customers should not ignore the form of depreciation when being compensated, or payment when replacing spare parts.

Some insurance companies will stipulate and require the policyholder to pay a portion of the cost of replacing the part. However, some companies do not calculate depreciation, and still commit to pay compensation or replace the entire part.

3. Free rescue, repair place

If you buy auto physical damage insurance and choose to use free towing service, you need to carefully read the terms and conditions in the contract to ensure maximum benefits.

Some insurance companies only agree to pay free towing benefits to customers if they purchase additional services of choosing a repair garage, and there are limitations on the conditions and scope of towing. Usually, the repair costs at authorized addresses are higher than other places. Therefore, many companies have a rule that if customers want to choose their own garage address, they will have to pay a higher fee.

In addition, you should also find out the list of genuine garages that are directly paid by the insurance company because claiming compensation from the insurance company may take a lot of time and involve other complicated procedures.

4. Insurance exclusions

Each insurance company will have its own regulations on payment of benefits to the insured and the terms of exclusion of insurance liability. Therefore, customers need to read the contract carefully to understand the cases in which the insurance company excludes liability. That will help customers ensure their own rights and avoid unnecessary misunderstandings from both sides.

The insurance company will refuse to pay compensation for material losses and damages specified in the contract. Or some companies will have regulations limiting the number of thefts or the number of stolen vehicle parts before compensation is paid.

* What cases are considered violations of the law and are not covered by auto physical damage insurance?

In the terms of car physical damage insurance, there are also exclusion clauses, which are cases where the insurance will not pay when an incident occurs, including:

- Driving a vehicle causing damage while under the influence of alcoholexceeding the provisions of current law as concluded in writing by a competent State agency, or driving using other stimulants prohibited by law.

- Illegal transportation of goodsor not fully comply with the provisions of law on transportation and unloading of goods.

- Driving without a valid driver's licensewill not be covered.

- Vehicle carrying more people than prescribedh of the competent State agency.

- Vehicle carrying more than 20% of its load capacityaccording to regulations of competent State agencies.

- Vehicles traveling at night without lights as prescribed, vehicles entering prohibited roads or prohibited areas(turning in a prohibited place, going the wrong way on a one-way street, running a red light or not obeying the traffic controller's orders) causing an accident is also not covered by auto physical damage insurance.