How to Choose the Types of Vehicle Insurance?
2 Answers
Recommended types of vehicle insurance are as follows: 1. Compulsory Traffic Accident Liability Insurance (CTPL): CTPL is a mandatory insurance required by the state. It is a compulsory liability insurance where the insurance company compensates for personal injury, death, or property damage caused to victims in road traffic accidents by the insured vehicle within the liability limits, excluding the vehicle's occupants and the insured. Car owners must purchase CTPL; without it, they are not allowed on the road. If caught by traffic police without CTPL, the vehicle will be impounded, fined double the premium, and must be purchased immediately to resume driving. 2. Vehicle Damage Insurance: This insurance covers damage to the insured vehicle caused by an accident while being driven by the insured or an authorized driver, with compensation provided by the insurance company within reasonable limits. It's important to note that this insurance does not cover theft, robbery, standalone glass breakage, or standalone wheel damage. Therefore, not all vehicle damages will be compensated by the insurance company after an accident. 3. Third-Party Liability Insurance: This insurance supplements CTPL, primarily covering personal injury, death, or property damage to third parties in traffic accidents. Third parties refer to anything other than the insured vehicle, including other motor vehicles, non-motor vehicles, people, animals, and road traffic facilities. 4. No-Deductible Insurance: In the event of a traffic accident, unless the car owner is not at fault, most vehicle insurance types have a certain deductible rate. The greater the responsibility, the higher the deductible rate, requiring the car owner to pay out of pocket for this portion. Purchasing no-deductible insurance transfers this cost to the insurance company, which then provides full compensation, making no-deductible insurance a highly practical option.
When it comes to choosing car insurance types, I was also confused at first, especially right after buying my car. I only knew that compulsory traffic insurance (CTI) is mandatory—without it, the police will check and fine you. Later, friends told me to consider adding commercial insurance based on my budget. For someone like me with a tight budget, third-party liability insurance is the priority, as it can save a lot in compensation costs if I accidentally hit someone. If the car is new and valuable, adding vehicle damage insurance makes sense; for older cars, you can skip it since the depreciation is low and repairs aren’t cost-effective. Oh, and don’t overlook the details—for example, theft insurance is quite useful in neighborhoods with unsafe parking, saving you from worrying all night. I recommend that beginners consult experienced drivers or compare quotes online to choose a suitable package—don’t just go for the cheapest option with minimal coverage, or you’ll regret it when something actually happens. In short, insurance is about peace of mind—spend within your means, avoid waste, and leave some room in your wallet.
