How to Buy Insurance for a New Car?
1 Answers
New cars require the following types of insurance: 1. Compulsory Traffic Accident Liability Insurance: It is a mandatory insurance that must be purchased for motor vehicles. The insurance company compensates for personal injury, death, and property damage caused to victims (excluding passengers in the insured vehicle) in road traffic accidents within the liability limits. Simply put, it is a 'mandatory third-party liability insurance.' This insurance cannot be dropped at will, as doing so would be illegal. 2. Third-Party Liability Insurance: Abbreviated as 'TPL,' it covers accidental incidents caused by the insured or an authorized qualified driver while using the vehicle, resulting in direct personal injury, death, or property damage to a third party. The insurance company provides compensation, and the coverage limit is chosen by the insured, typically ranging from 50,000, 100,000, 150,000, 200,000, 300,000, 500,000, to 1,000,000, mainly supplementing the shortcomings of the compulsory insurance. 3. Vehicle Damage Insurance: This insurance covers losses to the insured vehicle caused by natural disasters (excluding earthquakes) or accidents within the scope of insurance liability. The insurer compensates according to the terms of the insurance contract, which is the opposite of third-party liability insurance.
