Does Car Insurance Cover Mechanical Failures?
1 Answers
Insurance companies do not cover natural wear and tear, corrosion, or electrical and mechanical failures of vehicles; however, they will compensate for vehicle body damage caused by such failures in an accident. Below are the specific details of car insurance: Compulsory Traffic Accident Liability Insurance: Compulsory Traffic Accident Liability Insurance is a mandatory insurance required by law for every vehicle owner. It provides the most basic insurance coverage in the event of a traffic accident. If an accident occurs, this insurance helps the owner cover the economic compensation that would otherwise be difficult to pay. The compensation amount is determined based on the owner's liability proportion in the accident and whether it resulted in personal injury or death. Vehicle Damage Insurance: Vehicle Damage Insurance covers damage to the insured vehicle caused by an accident while being driven by the policyholder or an authorized driver. The insurance company will provide compensation within reasonable limits. The premium for this insurance is closely related to the vehicle's purchase price and the number of seats. Third-Party Liability Insurance: Third-Party Liability Insurance covers compensation for bodily injury or direct property damage to a third party (excluding the driver and passengers of the insured vehicle) caused in an accident. The insurance company will compensate according to the stipulated regulations.
