Lijiang Rental Car Insurance: What Happens When You Scratch It
Foreign visitors renting a car in Yunnan are often worried: if I scratch it or crash it, how much do I pay? Will the rental company overcharge me? This guide explains our Lijiang rental insurance terms clearly: what the 1500 RMB deductible means, why you pay 30% above that, why light scratches are free, why we do not charge downtime or depreciation, and who pays for towing. Real cases from nearly six years on the road.
I have handled nearly a hundred small accidents and a few big ones. The rule is simple: you know your worst case, you drive relaxed.
What insurance every car has
Every Lavida and Tank 300 we rent has both mandatory Compulsory Traffic Insurance (交强险) and commercial third-party liability insurance. That covers the other party when you are at fault. What it does not cover is damage to our own car — that is where the deductible comes in.
1500 RMB: small scratches you pay yourself
A Lavida respray costs 300-500 RMB at a local body shop. If every small fender bender went through insurance, our premiums would go up and the car would be flagged as an accident car. So we set a 1500 RMB deductible: damage under 1500 RMB, you pay the repair cost directly, no deposit withholding beyond that.
Real case: a Taiwanese guest scraped the right door on an e-bike in Lijiang Old Town, a 20 cm mark, no deep paint damage. We quoted 400 RMB for touch-up. The guest paid, deposit came back in full.
Above 1500: insurance covers, you pay 30%
If the damage is above 1500 RMB — rear-ending someone, side impact, airbag deployment — we file an insurance claim. You pay 30% of the insured repair amount.
Example: a Tank 300 guest hit the guardrail on a mountain road, front bumper + headlight + hood, 8000 RMB repair. You pay the first 1500, the remaining 6500 goes through insurance, you pay 30% of 6500 = 1950. Total from you: 3450 RMB. The rest we cover.
Our 30% co-pay is lower than many competitors who charge 50% or full depreciation. We want you to drive without fear.
Light scratches that do not break the clear coat: free
Branches brushing the car on a narrow road, a key marking while unloading luggage — if you can run your hand over the mark and feel no dent, and no bare metal shows, we buff it out for free. 10 minutes with a polishing machine, no charge.
A Hong Kong guest came back from Shangri-La with three branch marks on the door. We polished them out, no deduction.
Bodywork and parts: no downtime fee, no depreciation fee
This is the part foreign guests worry about most. When the car is in the shop, do I pay for the days it cannot be rented (downtime fee)? Do I pay for the "depreciation" because the car has been in an accident? At our company: no downtime fee, no depreciation fee. For major damage, downtime fee waived for the first 5 days.
We do not nickel-and-dime you. We do repeat business and word of mouth. If the car is out more than 5 days, beyond 5 days we do charge actual downtime — because we are also a business.
Towing: who pays
- Mechanical breakdown (engine, transmission, battery): we pay, we arrange a replacement car, no charge to you.
- Your fault (driving into a ditch, getting stuck in sand, running out of fuel, hitting a guardrail): you pay.
Real case: a Singapore guest drove a Tank 300 onto wet grass by Namtso Lake and got stuck. Our tow truck from Lhasa cost 3500 RMB, which the guest paid. But a German guest on the G318 had an overheating breakdown near Litang — mechanical — we paid the 800 RMB tow, and drove a replacement car from Chengdu to meet him at no extra rent.
What to do in an accident
1. Safety first, pull over, hazard lights. 2. Take photos: whole scene, license plates, damage close-ups, road markings. 3. WeChat us. Do not privately settle with the other party, do not sign any Chinese document you cannot read. We handle the police and the other party in Chinese. You do not need to speak Chinese.
Deposit and booking
Deposit: Lavida 3000, Tank 300 5000. After return, 5-7 working days for traffic violation check, then full refund to original payment method. Booking deposit 600, non-refundable if you cancel for personal reasons; double refund if we cannot deliver the car.
A few things we do not do
No electric cars — charging infrastructure is not reliable on overlanding routes. We do not rent to anyone without a Chinese temporary driving permit — IDP and foreign licenses are not valid in China. We do not encourage driving off paved roads into the wild — that voids insurance, and you pay for recovery.
Bottom line
We made the terms transparent on purpose: 1500 you pay, above that 30% co-pay, light scratches free, bodywork no downtime or depreciation, mechanical failure we cover, your fault you cover. We walk around the car filming at pickup and again at return. WeChat qxzj7557 (WhatsApp +86 13759155671), email [email protected]. Peak season Tank 300 books two weeks ahead.