What are the categories of car insurance?
2 Answers
Car insurance categories are as follows: 1. Vehicle Damage Insurance: Even with the utmost caution while driving, collisions causing damage to your own vehicle are inevitable. After purchasing vehicle damage insurance, the insurance company will compensate for the loss of the insured vehicle in case of accidental collisions, as stipulated in the contract. 2. Third-Party Liability Insurance: In the event of an accident during vehicle use that causes bodily injury, death, or property damage to a third party, for which the policyholder is liable, the insurance company will compensate for the portion exceeding the compulsory insurance compensation limit, as stipulated in the contract. 3. Passenger Liability Insurance: In case of an accident, the insurance company will compensate for the cost losses caused by driver injuries or fatalities, according to the contract. Particularly for new drivers or those who drive frequently, the likelihood of accidents is higher, so purchasing this insurance is recommended for better personal safety protection.
I remember when I was choosing car insurance, it was quite a hassle. Basically, it can be divided into a few categories: Compulsory Traffic Insurance is legally required and covers third-party personal injury or death; there are many types of commercial insurance, such as Vehicle Damage Insurance, which covers repairs for your own car's damage, and Third-Party Liability Insurance, which compensates for others' losses with optional coverage amounts; Comprehensive Insurance includes coverage for vehicle damage, theft, glass breakage, etc., making it quite thorough. Personally, I recommend that beginners like me opt for Comprehensive Insurance plus No-Deductible Coverage, which can reduce out-of-pocket expenses during claims and provide more peace of mind on the road. Consider your budget and driving environment—don’t skimp on small amounts and risk big trouble. In big cities with heavy traffic, higher Third-Party coverage is safer, and regularly updating your insurance can also prevent it from expiring.
