Is it mandatory to purchase full coverage insurance for a new car?
1 Answers
The first year of a new car does not require the purchase of full coverage insurance. Insurance can be purchased based on your actual needs. Typically, new cars are insured with full coverage because the combination of a new car and an inexperienced driver is more prone to accidents. However, by the second year, many car owners choose their insurance coverage based on their needs. When registering a new car, in addition to paying various taxes and fees, it is mandatory to purchase compulsory insurance, which is required by the state. The concept of full coverage insurance usually includes the following types of insurance: Third-party liability insurance: Under the terms of third-party liability insurance, the insurance company will compensate for the losses incurred if you collide with another vehicle. Vehicle damage insurance: Under the vehicle damage insurance clause, the insurance company compensates for losses to your own vehicle due to natural disasters or accidents. Passenger liability insurance: If passengers in your car are injured while you are driving, the insurance company will compensate for the losses of the driver and passengers. Spontaneous combustion insurance: Under the spontaneous combustion loss insurance clause, if the insured vehicle catches fire due to internal structure or loaded cargo, the insurance company will compensate for the vehicle loss. Theft insurance: If the vehicle is stolen or robbed after purchasing theft insurance, the insurance company will compensate for the total loss of the vehicle after 60 days, provided the local public security criminal investigation department has filed a case.
