Buying body insurance may still have to pay part of the cost
Body insurance helps car owners reduce the financial burden when the vehicle encounters accidents, collisions or risks within the scope of insurance. However, having purchased insurance does not mean that all repair costs are fully paid by the insurance company.
According to a technician at the Ninety Eight Auto Repair, Maintenance and Care Center (Thu Duc City, Ho Chi Minh City), one of the items buyers need to pay attention to is the deduction level.
This is the cost that the car owner must bear when a loss arises within the scope of insurance, according to the level and conditions specified in the contract. The remaining cost, after determining the scope of liability and compensation level, will be paid by the insurance company according to the agreement.
For example, if the contract stipulates a deduction of 500,000 VND per case, when a vehicle incurs a loss that is eligible for compensation, the vehicle owner may have to pay 500,000 VND on their own. If in the insurance period there are three independent loss cases and all three are within the scope of payment, the deduction can be applied to each case, equivalent to 1.5 million VND.
Therefore, the deduction level is not an additional amount that car owners must pay immediately when buying insurance. This amount arises when a loss occurs and the specific application must be based on the terms of the contract.
High deductions often come with lower insurance premiums
Also according to Ninety Eight Auto, the deduction level may also affect the insurance premium. For many products, when car owners choose a higher deduction level, the insurance premium may be lower. Conversely, a low deduction level or not applying deduction often comes with a higher premium.
However, insurance premiums not only depend on the deduction amount but also relate to many factors such as vehicle value, vehicle type, scope of insurance, usage conditions and damage history.
Therefore, before signing a contract, car owners need to clearly see the deductible amount applied, the calculation method and related conditions. Do not only care about the total amount to be paid to buy insurance.
Not all damages are compensated
Besides the deduction level, the exclusion clause is also an important content that needs to be checked. These are cases that are excluded from the scope of insurance or insurance companies are not responsible for compensation according to the conditions agreed in the contract.
Car owners should not understand that all damages occurring within the insurance period are reimbursed. The scope of insurance, compensation conditions and exclusion cases are specified in each product and contract.
In addition, buyers should check the benefits they have participated in, the scope of insurance, the insurance amount, the deduction level, the procedures for notifying losses and cases that are not compensated.
The insurance sales unit or garage can assist in explaining and handling some procedures when the car encounters problems. However, the benefits paid and the responsibilities of the parties must still be based on the insurance contract.
Reading carefully the terms before signing helps car owners know clearly in what cases they are protected, which costs they have to bear and avoid unexpected incidents when the car needs repair after an incident.
