What are the consequences of being overinsured or underinsured?

Both over-insured and under-insured are misunderstandings of car insurance insurance, and neither approach is advisable.

There are far more misunderstandings about car insurance than these two, and if you don't understand it, you will definitely suffer

How many common misconceptions about car insurance have you stepped on?

Overinsured means:The amount insuredHigher than the actual value of the vehicle。For example, some car owners have a low-grade car in their hands, and the market is newThe purchase price is less than 60,000 yuan, but to overinsure, nonThe guarantee is set at 120,000 yuanMistakenly thinking that spending a little more money can get a high compensation in the event of an accident with a vehicle, in fact, this is "wishful thinking", and overinsurance cannot get excess compensationFor a car of 500,000 yuan, the maximum compensation for the accident is only 500,000 yuan, and the extra money spent is wasted.

Overinsurance can't wipe the insurance company's oilIn the end, it is the policyholder who suffers. Therefore, it is good to have enough insurance, and there is no need to waste too much money.

Underinsured means:The amount insuredlower than the actual value of the carIn order to save premiums, some car owners are often underinsured. For example:, oneA car worth 200,000 yuanIn the case that the insurance company has made corresponding notices, the car owner still insistsOnly $100,000 of the sum insured is insured。The car owner does save some premiums by playing a little clever, but in the future, in case of an accident that causes damage to the vehicle, he will definitely not get the full compensation.

When the time comes, it will be too late to regret it if you can't afford the loss.

Finally, the senior sister suggested:Whatever the budget in mind, it's wisest to do soMake sure you are fully insured, the actual value of the vehicle is as much as it is.

Saving money can't be at the expense of the sum insured, and how to buy car insurance to make it cheaper requires working on the choice of car insurance. Buy what you should buy, don't buy what you shouldn't, so that you won't suffer a loss when you buy car insurance, and it's the most cost-effective.

Buy too much and waste, buy less and suffer a loss! How much does it cost to buy car insurance a year?

I hope that the majority of car owners will be more rational and calm when insuring car insurance, and be less rash and blind, so as to avoid falling into misunderstandings and suffering less losses. Hope!

Excess insurance refers to insurance in which the insured amount is greater than the insured value. In fixed value insurance, since both parties have determined the insured value and the insured amount, there is generally no case of excess insurance.

In indefinite value insurance, the amount of insurance agreed upon by both parties at the time of entering into the insurance contract is generally lower than the market**, but the value of the subject matter of insurance in the future** may lead to excess insurance. In the case of excess insurance, the portion of the insured amount in excess of the insured value is invalid in accordance with the provisions of the Insurance Act.

According to Article 38 of the Insurance Law, when it is found that the value of the subject matter of the insurance is significantly overinsured, the policyholder may request the insurer to refund the relevant premiums.

Undercover insurance refers to insurance with an insured amount that is less than the insured value. In fixed-value insurance, if the insured and the insurer clearly agree on the insured value and the insured amount in the insurance contract, and the insured amount is less than the insured value, it is insufficient insurance.

In indefinite value insurance, there are two situations in which underinsurance occurs:

First, the amount of insurance is determined at a level lower than the market price at the time of insurance;

The second is that it is fully insured at the time of application. However, due to the increase in the value of the subject matter of insurance in the future, the insurance is insufficient. In the case of deficiency insurance, the parties may agree on the method of compensation, and if there is no agreement in the contract, the proportional compensation shall be implemented in accordance with the Insurance Law.

The so-called proportional compensation is to multiply the ratio of the insured amount to the insured value by the loss amount to obtain the actual compensation amount.

Article 40 The insured value of the subject matter of insurance may be agreed upon by the policyholder and the insurer and stated in the contract, or may be determined according to the actual value of the subject matter of insurance at the time of the occurrence of the insured event.

The insured amount must not exceed the insured value; If the insured value is exceeded, the excess part shall be invalid.

If the insured amount is lower than the insured value, the insurer shall be liable for compensation in accordance with the proportion of the insured amount to the insured value, unless otherwise agreed in the contract.

Underinsured means that the insured amount agreed in the insurance contract is less than the insured value. For example, if the insurance amount of a Pushuyetong Santana car worth 120,000 yuan is determined according to 80,000 yuan, it is insufficient to insure the amount of Tuhong. The consequences of under-insuring are:

After the occurrence of an insured event, the insurance company bears the liability for compensation in accordance with the proportion of the insured amount to the insured value, that is, proportional compensation.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

Underinsurance means that the insured amount is lower than the actual value of the insured object, and the actual compensation of the insurance company is capped by the insured amount.

Consequences: If the car insurance is underinsured, the insurance company will pay out the sum insured divided by the value of the vehicle, so the customer may receive less compensation than the accident loss.

According to the People's Republic of China Insurance Law:

Article 55.

If the policyholder and the insurer agree on the insured value of the insured object and specify it in the contract, the agreed insured value shall be used as the compensation calculation standard when the loss of the insured object occurs.

If the policyholder and the insurer have not agreed on the insured value of the insured object, the actual value of the insured object at the time of the occurrence of the insured event shall be used as the compensation calculation standard when the insured object is lost. The insured amount must not exceed the insured value;

If the insured value is exceeded, the excess part shall be invalid, and the insurer shall refund the corresponding insurance premium. If the insured amount is lower than the insured value, unless otherwise agreed in the contract, the insurance memorial shall be liable for compensating the insurance money in accordance with the proportion of the insured amount to the insured value.

Article 40. The insured or the insured may designate one or more persons as the beneficiary. If there are several beneficiaries, the insured or the policyholder may determine the order and share of the benefits; If the beneficiary share is not determined, the beneficiary shall enjoy the beneficiary rights according to the equal share.

First of all, not all family property can be insured. "Consumers should carefully read the insurance liability in the contract when taking out household property insurance, some family property cannot be insured. Chongqing insurance experts said that the coverage of home property insurance covers houses, house accessories, house decoration and clothing, furniture, household appliances, cultural and entertainment supplies, etc., while gold and silver jewelry, antiques, calligraphy and paintings and other valuables, insurance companies generally do not provide insurance protection; Some insurance companies provide insurance for small demolition of family property for cash theft, but due to the high risk, the amount of compensation paid by the insurance company will not be high.

Secondly, home property insurance is the most economical to "insure on demand". "As a type of property insurance, home property insurance follows the principle of compensation, and the insurance company is not responsible for compensation for the part of excess and repeated insurance. Chongqing insurance experts said that consumers should communicate with insurance companies in advance when applying for home property insurance, do not over-insure and duplicate insurance, and the best way to insure is to "insure on demand".

Third, the insurance company should be informed of any change in the subject matter of the insurance in a timely manner. "For home property insurance, the change in the content of the insurance contract must be approved by the insurance company, and the legal effect can only be produced after the endorsement is issued or the original policy is endorsed. Chongqing insurance experts said that if most of the family's property has changed, it is necessary to go to the insurance company to change the content of the policy, and the premium is calculated on a daily basis, and the excess is refunded and the deficiency is compensated; If an accident or natural disaster occurs and causes losses, especially if you cannot confirm the insurance liability, you must notify the insurance company as soon as possible, and ask the insurance company to come to investigate and assess the damage.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

Underinsured refers to the amount of insurance agreed in the insurance contract.

Less than the insured value. For example, an ordinary Santana worth 120,000 yuan.

For cars, if the insurance amount is determined according to 80,000 yuan, then Tu Hong shouts that it is underinsured. The consequence of underinsurance is: after the occurrence of an insured event, the insurance company shall bear the liability for compensation according to the proportion of the insured amount to the insured value, and the absolute blindness is proportional compensation.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"