Squeeze every last drop out of insurance companies – car owners must read this carefully and keep it in mind

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Preface It is believed that many car owners do not have a thorough understanding of auto insurance; they only deal with it after an accident occurs. As laypeople, these owners are unable to fully grasp the complexities involved in auto insurance, nor do they know how to proceed in order to reap the greatest benefits from it Don’t worry; many experienced drivers who have plenty of hands-on experience have already summarized their insights for us. We just need to read and save this information for future use. Moreover, these are insurance terms that ordinary drivers can understand, and they will surely help you gain a deeper understanding of car insurance and claims processing, so you can get the most out of your insurance policy! Who said that isn’t true? Buying insurance is all about saving money and avoiding hassle! 　　 　　In-depth Explanation of Insurance Terms (I): Vehicle Damage Insurance vs. Third-Party Liability Insurance Let’s start by discussing the two most important types of insurance: vehicle damage insurance and third-party liability insurance. Vehicle damage insurance and third-party liability insurance are the basic types of vehicle insurance, covering the costs of damage to the insured vehicle as well as any losses caused to third parties as a result of the use of that vehicle! 　　You probably think that even in the case of vehicle damage caused by natural disasters, insurance companies will still cover the costs! That statement is half true; most of the losses caused by natural disasters are compensated for, with one exception—**! 　　 　　Case 1: If your car is unfortunately hit by a building in **, haha... Solution: Don’t rush to file a claim as soon as ** is over; wait a few days after that before submitting the claim. 　　Incident description: Apparently, **caused the wall to become loose, and eventually it collapsed one day, damaging your car. Remember: under no circumstances mention that **was the cause of the incident. 　　 　　Case 2: If, during a sudden brake application, items inside your car fly onto the windshield and cause it to crack, what would you say? 　　If you were to honestly tell the insurance company, “My tissue box flew up and hit the glass…” (Whoa! Pretty impressive internal skills, haha; I was just using a tissue box as an example for fun. )”Then you’re in trouble! That claims adjuster will point to his mouth and say to you, “Please watch my lips—NO!” ” 　　Solution: Make a small change to the facts… Incident description: A friend of mine who is trained in iron head techniques broke the windshield while braking; OK! Remember: The insurance company will not cover losses caused by impacts from “objects” inside the vehicle! But when it’s damaged by a person, that’s another matter. 　　 　　Case 3: What if your car collides with another vehicle while being towed? 　　Solution: Ignore those things that are factually true… Claim statement: Do not mention that you were towing a vehicle or being towed by someone else; otherwise, regardless of whether you are at fault in the accident, the insurance company will refuse to pay any compensation. 　　 　　Case 4: If you break your own windshield in an accident and do not have glass insurance, would you file a claim with the insurance company? 　　Is it possible to file a claim against someone without having insurance for the glass? Sure, definitely! The full name of glass insurance is Separate Glass Breakage Insurance; it covers damage to the glass that occurs while the vehicle is parked or in use, whereas damage to the glass resulting from an accident is covered by vehicle damage insurance. 　　If you don’t have glass insurance, what do you do when you wake up in the morning and find that someone has broken your car’s windows? ? Hehe, the old trick: caused by sudden braking while driving; once again, it’s the head causing trouble! (Remember to find a friend of similar height to use as a shield), and if it’s the side window that breaks, just say it was your head that hit it during a skid, hehe! 　　 　　Case 5: What should you do if your car’s small light is broken in a collision? 　　Find an insurance company; they definitely won’t refuse to compensate you. So do you think you’ve made a profit? No, in fact you’re likely to have to compensate, to incur a loss. 　　Didn’t understand? Let me tell you that the cost of full insurance for each car is roughly between 2,500 and 5,000 (more expensive cars will cost even more). If you don’t file any claims during the one-year insurance period, you will receive a 10% discount on your insurance premium for the following year. You can do the math yourself; if the amount of any claims is too small, well, it’s not worth it – a 10% discount is definitely more beneficial. 　　 　　 　　 　　In-Depth Explanation of Insurance Terms (II): Lost Vehicle – How to Minimize Losses? 　　 　　During the parking and use of a vehicle, there are inevitably some annoying issues that can arise, and losing the vehicle is the worst of them all. However, if you follow my advice, your losses will be minimized. 　　Remember, once your car is lost, what’s the first thing you need to do? Call the police? Wrong! The car has already been lost; it’s not that easy to find it right away. You’re overestimating the capabilities of the Chinese police. It’s better to think about ways to minimize the losses! 　　Reduce losses? It’s not that easy; the car’s already lost, so how can it be reduced? Don’t forget, I’m here! ! ! ! 　　First, make sure to check whether your insurance policy includes coverage for vehicle theft. What, none? Then just accept your bad luck; it’s useless to come to me. Buy another one! 　　If you have taken out theft and robbery insurance, first of all, I congratulate you – your losses can be minimized. But still, be careful! What you need to do now is keep your mouth shut and read my post carefully; otherwise, you will definitely regret it! 　　 　　Case 1: According to the regulations for theft and robbery insurance, a cumulative absolute deductible of 0.5% is applied for each item lost by the insured, such as the vehicle registration certificate, the original purchase documents for the vehicle, and the voucher for the vehicle purchase tax. Loss of car keys results in a 5% increase in the absolute deductible. These provisions are printed in the lightest font on the insurance policy; if you don’t believe it, you can take out the policy and look carefully – you will definitely find this text in some inconspicuous corner. 　　So whether you have ever lost a spare key or have a key in a car that was stolen from you, please remember to forget about it – otherwise… you’ll have to bear the 5% loss yourself! 　　 　　Case 2: If your car is stolen in a paid parking lot or a commercial repair shop, will the insurance company cover the costs? 　　The answer is: no compensation! ! Since the aforementioned locations are responsible for storing vehicles, in the event that the vehicles are damaged or lost due to poor storage by the custodian during the storage period, the custodian shall bear responsibility. Insurance companies are not liable for compensation. 　　So the correct approach is to go to the parking lot to file a claim; therefore, remember to keep the receipt for the parking fee every time you park. Although it says that lost receipts won’t be compensated, according to the provisions on standard form contracts in our country’s Contract Law, this constitutes a unilateral attempt to shirk one’s own responsibilities! Go ahead and sue him without any hesitation. Hehe, I have good news for you: someone has already won a lawsuit like this, so based on the principle of precedent, future cases can be ruled upon using this example as a guide, haha! 　　 　　Case 3: If the parking lot is owned by your friend, or if you have learned from other sources that this parking lot does not have the means to compensate for the damage to your car, would you consider choosing a different place to park your car? Haha, I didn’t say anything at all! Think about it by yourself. 　　 　　Case 4: Furthermore, if you are a boss and have fallen out with a friend due to some accounting issues, and that friend is a scoundrel who secretly stole your car, and you suspect he did it, would you turn to the insurance company for compensation? 　　Let me tell you, insurance companies are not liable for compensation. As stipulated in the terms, the insurer shall be exempt from liability if the vehicle is stolen or robbed as a result of civil or economic disputes with others. 　　So, you can simply forget about your financial disputes and go straight to the police station and the court to file a report. Remember, never mention the person you suspect, otherwise financial issues will be involved in the case. Given the efficiency of Chinese courts, you’ll likely have to take a taxi to get around within half a year! 　　 　　Case 5: If you have just bought a new car and purchased comprehensive insurance, but haven’t had time to get the license plates yet (according to current regulations, license plates can be obtained 15 working days after the vehicle inspection), will the insurance company cover the costs in case of an accident? 　　No liability for compensation. Because at the time of an accident, the insured vehicle must meet two conditions: first, it must have a driving license or license plate issued by the public security traffic management department; second, it must have passed inspection by the public security traffic management department within the specified period. However, generally, by special agreement, for newly registered vehicles for which the public security authorities require insurance before inspection and license plate issuance, vehicle damage insurance and third-party liability insurance can be provided. Therefore, the theft and damage insurance coverage for compensating for lost vehicles did not take effect, and naturally, you will not receive any compensation either. 　　It seems that if you don’t dare to change the lost time, the newly purchased car will be given away! I didn’t say anything at all! 　　 　　Case 6: If your car is recovered, how does the insurance company handle the compensation? 　　Once the insured vehicle that was stolen is recovered, and if the insurance company has not yet paid out any compensation, the vehicle should be returned to you. However, the insurance company is responsible for covering the reasonable costs associated with any damage to the vehicle during the period it was stolen, as well as the costs of repairing any lost parts or accessories. If the insurance company has already made a settlement, the vehicle should be returned to you along with the corresponding compensation. If you do not wish to reclaim the original vehicle, all rights and interests to the vehicle shall belong to the insurance company. 　　 　　In-Depth Explanation of Insurance Terms (III): Collisions 　　　Does the insurance company cover all costs in case of a collision? Of course not. You just need to take a close look at the compensation and exclusion clauses in your policy – insurance companies have a long list of things that they won’t cover. If you want to minimize your losses, come to me instead, haha! 　　 　　Case 1: Suppose you are a beginner who has just borrowed a car (or perhaps rented one), and while practicing driving on the road, you hit your brother. Knowing that the car is covered by third-party liability insurance, would you file a claim with the insurance company? 　　Answer: If you go, you’re a fool; the insurance company will kick you out right away. Why? ? 　　First, you need to know what third-party liability insurance is; its full name is Third-Party Liability Insurance. 　　So what is a third party? 　　A third party refers to a victim who is not the insurer or the insured, and who suffers damage to persons or property aboard the insured vehicle as a result of an accident involving that vehicle. Put simply, a third party refers to four categories of people who are excluded: the insurer, the insured, the driver of the vehicle at the time of the accident and their family members, and the family members of the insured. 　　Now I understand: as the driver at the time, you caused injuries to your family, and the insurance company will not cover the costs. Well, now you know what to do! What? Don’t you know yet? I’m so annoyed! Just change the driver – that’s all there is to it. Really, it’s because of this that I ended up saying everything. 　　 　　Case 2: If you are unfortunate enough to cause an accident while driving, and it is entirely your fault, the court orders you to compensate the other party for their financial losses, emotional distress, disability costs, and so on. How should you handle this situation? ? What else can you do? Just pay money! 　　Wrong! That’s completely wrong! 　　You should discuss this with the other party’s family to increase the compensation for financial losses and disability damages, and try to minimize compensation for mental distress; of course, it would be even better if none is required. 　　Why? You ask me why? Isn’t this exchanging five horses for six sheep? 　　Dude, you’re wrong again. Insurance companies do not bear in full and unconditionally the amount of compensation that the insured is legally required to pay; rather, they compensate in accordance with the provisions of the Regulations on Handling Road Traffic Accidents and the insurance contract. The terms explicitly stipulate that any compensation for mental distress arising from an insurance incident is excluded from coverage. Therefore, regardless of whether the court rules that the insured should compensate for mental distress, the insurance company is not liable for such compensation. 　　Got it? ? Other insurance companies will cover the costs for you, but they won’t pay anything for emotional distress. So, it’s better to give the other party a little more money rather than agree to pay compensation for emotional harm. In short, just use the insurance company’s resources to cover it, haha! 　　 　　Case 3: If you are unfortunate enough to get into another car accident, and this time it is not your fault and the other party refuses to pay compensation, can you file a claim with your insurance company? 　　Answer: Yes, but you must first file a claim with a third party in order to be eligible for compensation from the insurance company. If you give up your right to claim from a third party and instead file a claim directly with the insurance company, the insurance company will not pay. By giving up your right to seek compensation from a third party, you are also giving up your right to claim compensation from the insurance company. 　　So, remember, remember – you must first try to get compensation from the other party; it’s best to have proof that attempts to enforce this through court have failed. Only then can you confidently approach the insurance company. Let them deal with the remaining mess – after all, they charge you so much in insurance premiums every year! 　　 　　Case 4: I remember there was once an unlucky driver who, under the police’s instructions, helped them intercept a fugitive criminal by crashing into that criminal; the collision between the two vehicles was terrible. Will the insurance company compensate him? 　　Of course not; the insurance terms clearly state that the driver’s \"intentional actions\" are not covered by compensation, so one has to repair the car themselves. Therefore, if you don’t have enough financial resources, think carefully before trying to act like a hero! ! ! 　　 　　 　　 　　In-Depth Explanation of Insurance Terms (IV): Claims – A must-read, as you may not have heard about this before. ★Insurance Case 1: A friend lost his car, which was fully insured; he tried to file a claim with the insurance company but was denied. The reason given by the company was that the car had not passed its annual inspection according to the records at the vehicle registration office. 　　Case analysis: What the insurance company did is entirely reasonable and is also in line with the terms of the insurance contract. Insurance coverage applies only to vehicles that meet the required standards; vehicles that have not passed their inspection can be considered non-compliant vehicles. No matter how well-maintained such vehicles are, it’s of no use – you will lose them without getting anything in return, and the insurance premium paid will be wasted, with at most the cash value of the policy being refunded. 　　Conclusion of the case: Be sure to have your vehicle inspected on schedule; do not delay it. Otherwise, while fines may be a minor issue, refusal to cover damages can be a serious problem. In the event of an accident that causes damage to third parties, you will have to bear the costs yourself – meaning your insurance policy has been useless! 　　Solution for this issue: Conduct the annual inspection on time; even if it’s just by one day, do not be late ； If an accident does occur, remember not to report it immediately; instead, spend the money needed to complete the vehicle inspection procedures first before going through the process of filing a claim! 　　I’m sorry, I felt dizzy for a moment just now; I didn’t say anything, did I? It’s nonsense anyway. 　　 　　★Insurance Case 2: Similar to the previous case, those drivers who have not had their vehicles inspected on time should be aware that the insurance company will not cover any problems that arise while driving. The reason is similar to that in the previous case, so it will not be repeated here. 　　 　　★Insurance Case 3: This is a question that is often asked: I just bought my car and it hasn’t yet been registered – does the insurance take effect? 　　Explanation: When an accident occurs with a vehicle, there are two conditions that the insured vehicle must meet. First, it must have a driving license or license plate issued by the traffic management authorities; second, it must have passed inspections conducted by those same authorities within the specified time frame. 　　But generally, by special agreement, for new vehicles that require insurance before inspection and license plate issuance, damage insurance and third-party liability insurance can be provided. So, if your car is stolen in such a case, it’s unfortunate; but if you cause an accident and injure someone, at least the insurance company will cover the costs. Now you understand! 　　 　　★Principles for supporting documents in insurance claims: (Since this question has been asked by N people, it is answered here together.) There are several situations in the context of insurance claims: 1. When the incident is resolved by the traffic police: A penalty notice or settlement document issued by the traffic police is required; if a court judgment is issued, then that judgment can be used as proof. These materials are definitely effective; insurance companies will surely give them the green light. You can file a claim without worry. 2. In the case of an accident that occurs within the residential complex: For serious accidents, where the vehicle damage is significant, it’s still necessary to obtain a certificate from the traffic police department, which is quite troublesome ； 　　Minor scratches: Go to the community property management to get a certificate; since it’s often suspected, this process is usually quite troublesome ； 　　So, it’s best to report it on city roads when filing a report; otherwise... it will drive you crazy! 　　3. Minor accidents that occur on the road, including scratches that happen while parking. The principle that needs to be established in such cases is: is a third party involved? If third-party compensation is involved, a certificate from the traffic police team is still required. 　　If the parties involved in the accident resolve the matter on their own, they can state in the claim that the third party repaired the vehicle themselves, and then file a claim under the vehicle damage insurance for self-inflicted damage. If the insurance company asks you to obtain a certificate from the traffic department, be firm and refuse; say that there is no place to go to get such a certificate. Generally, the insurance company won’t insist too much on this. You need to agree to issue the certificate; don’t blame me for not warning you. Just go ahead then – the money you’ll have to pay might not even be enough for gas! 　　4. The most unfortunate person: If hit by another vehicle and the perpetrator flees the scene, making it impossible to locate them. In severe cases, it becomes more complicated; such issues need to be resolved by the traffic authorities, and the insurance company can handle the recovery on behalf of the victim. 　　If it’s not serious, it’s best to handle the claim issue by taking responsibility oneself. When filing a claim, pay attention to whether there is paint from the other vehicle on your car, as well as the direction of the collision; you must be able to provide a coherent explanation, otherwise you’ll be in trouble! 　　One final reminder to everyone: you must file a report within 48 hours; otherwise, your claim may be rejected outright! ! Remember, remember – even if it’s not within 48, you still have to say 48! 　　 　　In conclusion: In fact, we all hope to never need to turn to an insurance company in our lives, but many things make it difficult for us to have our way. If we win the lottery one day, we should use the methods mentioned above to minimize our losses as much as possible. I hope this article will be helpful to car owners, and I also wish them safety at all times