Is it better to buy 500,000 or 1,000,000 for 'third-party liability insurance'?
2 Answers
When purchasing 'third-party liability insurance,' choosing between 500,000 or 1,000,000 should be determined based on specific circumstances, as follows: 1. High risk of traffic accidents: If you frequently drive in large cities with heavy traffic, where accidents are more likely to occur and luxury cars are commonly seen, it is advisable to opt for 1,000,000 in coverage. This provides extra security, ensuring that even in the event of an accident, compensation won't be a concern. 2. Low risk of traffic accidents: If you often drive in small towns or rural areas, possess good driving skills, and rarely encounter luxury cars, purchasing 500,000 in coverage would be sufficient.
To be honest, after driving for so many years, I've seen plenty of post-accident situations. The difference in premium between choosing 500,000 and 1,000,000 for third-party liability insurance might seem trivial, but the gap in coverage when an accident happens can leave you regretting it deeply. Last year, a friend of mine rear-ended a luxury car, and the repair costs plus compensation exceeded 600,000. His 500,000 coverage wasn't enough, and he had to fork out over 100,000 from his own pocket to cover the shortfall. In cities nowadays, with so many cars and complex situations, accident compensations can easily reach millions. 500,000 might sound decent, but in case of serious injuries or luxury car damages, you could end up with zero coverage left and still owe money. I recommend going straight for 1,000,000 coverage. It's just a few hundred bucks more in premiums per year on average, but the peace of mind it buys is worth every penny. Don't skimp and invite trouble—the essence of insurance is to prepare for the unexpected. If your budget allows, always opt for the higher coverage.
