How Many Types of Insurance Should a Vehicle Purchase?
2 Answers
There are three main types of insurance that a vehicle should purchase. The details are as follows: 1. Third-party liability insurance: This is a highly necessary type of insurance. Simply put, it is a liability insurance. If an accident occurs and the insured party is not at fault, this third-party liability insurance will play a significant role. 2. Compulsory traffic insurance: This is a mandatory type of insurance required by the state. Without it, you are not even qualified to drive on the road, and if caught by traffic police, severe penalties will be imposed. 3. No-deductible insurance: If you purchase vehicle damage insurance, third-party liability insurance, and no-deductible insurance, you will have no worries because the insurance company will cover all losses in case of an accident. This differs from general insurance, which typically only covers part of the losses in an accident. 4. Vehicle damage insurance: This is the best type of insurance for household vehicles. It covers minor accidents such as slight collisions, scratches, or sudden falling objects damaging the car.
I've gone through the process of buying car insurance several times, and there are generally three main types you must purchase. First is compulsory insurance, also known as traffic accident liability insurance, which is legally required and covers basic compensation if you hit someone. Second is third-party liability insurance, which extends the compensation amount to prevent financial ruin in case of a serious accident. Then there's vehicle damage insurance, where the insurer covers repairs if your car gets scratched or damaged, though premiums depend on the car's value—new cars are recommended to have it. Some additional coverages like theft insurance and passenger liability insurance protect drivers and passengers, which is quite practical if you have kids at home. Every year, I compare quotes from several insurance companies and even tried windshield insurance, which saved me money on replacing the windshield. Overall, comprehensive insurance offers peace of mind but is expensive; if money's tight, just stick with the first three.
