How many types of vehicle insurance are needed?
2 Answers
You need to insure compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, passenger liability insurance, and comprehensive theft insurance. Below is relevant information about motor vehicle insurance: 1. Definition of motor vehicle insurance: Motor vehicle insurance, also known as auto insurance (abbreviated as car insurance), refers to a type of commercial insurance that covers liability for personal injury, death, or property damage caused by natural disasters or accidents involving motor vehicles. 2. Development of motor vehicle insurance: The true development of motor vehicle insurance occurred after World War II. On one hand, the popularity of automobiles made road accidents a widespread social hazard; on the other hand, many countries included third-party liability for various motor vehicles, including cars, within the scope of compulsory insurance. Therefore, motor vehicle insurance has become a universally significant insurance business globally.
In terms of insurance, I think it's essential to cover a few key areas to avoid unexpected expenses. The first is compulsory traffic insurance, which every car owner must have as it's legally required. Driving without it can result in fines. The second is third-party liability insurance. I've personally experienced hitting another car, which cost me a lot in compensation, and this insurance can cover part of the loss. The third is vehicle damage insurance, which covers your own car in case of scratches or collisions, saving you from paying out of pocket for repairs. The fourth to consider is theft insurance, especially in big cities where the risk of car theft is higher, providing peace of mind. Lastly, it's advisable to add passenger liability insurance to protect yourself and your passengers. Having driven for over a decade, I've seen many fellow drivers face huge compensations that drained their savings due to inadequate coverage. My suggestion is to choose based on the car's age: new cars should have comprehensive coverage, while older cars only need basic items. Regularly check your policy to ensure all risks are covered, and don't overlook safety just to save money. This way, whether it's long-distance trips or daily commutes, you can drive with confidence and fewer worries.
