Is Full Coverage Insurance Mandatory for New Cars?
1 Answers
Full coverage insurance is not mandatory for new cars. The specific reasons are as follows: 1. Reason one: Purchasing full coverage insurance for a new car is not compulsory because, apart from the mandatory compulsory traffic insurance, other commercial insurance can be purchased based on individual needs. 2. Reason two: Depending on personal circumstances, if the coverage of compulsory traffic insurance is deemed insufficient, commercial insurance can be purchased to supplement the areas not covered by compulsory traffic insurance. Currently, the commonly purchased commercial insurance policies include the following: 1. Vehicle Damage Insurance: This insurance covers the costs incurred due to vehicle damage caused by traffic accidents during driving. 2. Third-Party Liability Insurance: This refers to the economic liability that the insured or their permitted drivers are legally responsible for in the event of a traffic accident while using the insured vehicle, resulting in bodily injury, death, or direct property damage to a third party. The insurance company will compensate according to the insurance contract. 3. Passenger Liability Insurance: This refers to the compensation liability that the insured is legally responsible for when a permitted qualified driver causes bodily injury or death to passengers in the insured vehicle during an insurance accident while using the vehicle. The insurance company will compensate according to the insurance contract. 4. Comprehensive Theft Insurance: When the insured motor vehicle is stolen, robbed, or snatched, resulting in vehicle loss, or when the vehicle is damaged or parts and accessories are lost and need repair during the theft, robbery, or snatching, the insurance company will compensate according to the contract terms.
