Is Motor Vehicle Damage Insurance the Same as Auto Damage Insurance?
1 Answers
Motor Vehicle Damage Insurance is indeed Auto Damage Insurance, which is the abbreviated form of Vehicle Damage Insurance. Vehicle Damage Insurance is responsible for compensating losses incurred by the insured vehicle due to natural disasters and accidents. It is the most widely used type of vehicle insurance. Below are the insurances required after purchasing a car: 1. Compulsory Traffic Insurance: This is a mandatory insurance stipulated by the state, and failure to purchase it may result in fines if checked by traffic police. This insurance offers limited compensation, mainly covering others, and does not compensate for the owner's own vehicle. 2. Third-party Liability Insurance: This is used to compensate for losses caused by the car owner to third-party personal injuries or deaths. It is a must-buy for both self-protection and protection of others. 3. Auto Damage Insurance: Used to compensate for losses to the vehicle itself caused by natural disasters and accidents, recommended for new drivers. 4. No-deductible Insurance: An additional insurance that transfers the responsibility the owner needs to bear to the insurance company, reducing the owner's losses. If both Auto Damage Insurance and Third-party Liability Insurance are purchased, it is advisable to also purchase No-deductible Insurance.