What are the 4 basic types of car insurance?
1 Answers
The 4 basic types of car insurance are compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, and no-deductible coverage. Here are the detailed explanations: Compulsory traffic insurance (mandatory purchase): The full name of compulsory traffic insurance is 'Compulsory Traffic Accident Liability Insurance for Motor Vehicles'. It is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, and property losses (excluding the driver, passengers, and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limits. Vehicle damage insurance (foundation of commercial insurance): Vehicle damage insurance is a type of commercial auto insurance where the insurance company compensates for damages to the insured vehicle caused by accidents occurring during its use by the insured or an authorized driver, within reasonable limits. Third-party liability insurance (important supplement): The coverage scope of third-party liability insurance is similar to compulsory traffic insurance, but it only provides compensation after compulsory traffic insurance has paid out. Compensation is made according to the proportion of accident liability, with premium prices corresponding to the insured amount. No-deductible coverage (cannot be purchased separately): No-deductible coverage is an additional commercial insurance that cannot be purchased separately. It can only be obtained as an add-on to main insurance policies (vehicle damage insurance or third-party liability insurance).
