Is Commercial Insurance Necessary for Small Cars?
2 Answers
Automobiles do not require commercial insurance, and the necessity of purchasing commercial insurance varies from person to person. However, compulsory traffic insurance must be purchased. After obtaining compulsory traffic insurance, car owners can opt for commercial insurance if they desire more comprehensive coverage. Components of Automobile Insurance: Automobile insurance generally consists of two parts: basic insurance and additional insurance. Basic insurance is further divided into vehicle damage insurance and third-party liability insurance. Coverage of Automobile Insurance: Vehicle damage insurance provides compensation for the loss of the insured vehicle; third-party liability insurance covers damages to objects outside the insured vehicle, such as pedestrians, public property, and other vehicles; passenger liability insurance compensates for injuries and property losses of people inside the insured vehicle; theft insurance provides compensation in case the insured vehicle is stolen.
Buying commercial auto insurance is really necessary, especially for new car owners. Compulsory traffic insurance only covers a minimal amount. If you actually hit a luxury car or injure someone, without commercial insurance you'll be left emptying your wallet. I have a friend who only bought compulsory insurance and ended up paying over 100,000 yuan after rear-ending a Mercedes-Benz - he was filled with regret. It's recommended to get third-party liability coverage of at least 2 million yuan, and add vehicle damage insurance too. With electric bikes darting around unpredictably on roads nowadays, minor scrapes are unavoidable, so having insurance gives peace of mind. Remember to compare quotes from multiple insurance companies and choose one with more service outlets for easier claims processing.
