What are the four basic types of car insurance?
3 Answers
Car four basic insurance are vehicle damage insurance, third-party liability insurance, no-deductible insurance, and passenger insurance. The following is the relevant introduction: Vehicle damage insurance: Vehicle damage insurance, abbreviated as 'vehicle loss insurance', is the most widely used type of vehicle insurance. Whether it's minor scratches or serious damage, the insurance company will cover the repair costs. Third-party liability insurance: Third-party liability insurance refers to the financial liability that the insured or their permitted drivers must bear for accidental injuries or direct property damage to third parties caused by the use of the insured vehicle during an accident, which the insurance company is responsible for compensating. No-deductible insurance: No-deductible insurance means that if an accident within the scope of insurance liability occurs to a vehicle insured with vehicle damage insurance and third-party liability insurance, resulting in vehicle damage (excluding theft) or third-party liability compensation, the insurer is responsible for compensating the amount stipulated in the 'Terms'. Passenger insurance: Passenger insurance refers to the financial liability that the insured must bear for personal injuries or deaths of passengers in the insured vehicle caused by an accident during the use of the insured vehicle by the insured or their permitted legal drivers during the insurance period, for which the insurer is responsible for compensating according to the provisions of this insurance contract.
Honestly, after driving for so many years, I've personally experienced the importance of those four basic insurances: Compulsory Traffic Insurance is mandatory by the state, ensuring some compensation when you hit someone else. Like that time I rear-ended someone, it was all thanks to this coverage. Vehicle Damage Insurance covers damages to your own car, such as scratches while parked—the insurance company directly reimburses the repair costs, saving both money and hassle. Third-Party Liability Insurance provides extra coverage for hitting third-party people or property. It's best to opt for a higher coverage amount, so if you accidentally damage someone's luxury car, you won't have to empty your pockets. Passenger Liability Insurance protects your passengers, especially since I often take my kids out for fun. In case of sudden braking injuries, it covers medical expenses. I believe none of these can be skipped—skimping on insurance is the dumbest investment because accidents always come knocking. Whenever my friends hesitate to buy full coverage, I urge them to think about the consequences.
As a new car owner, I was initially confused about these basic insurances: compulsory traffic insurance is government-mandated, meaning if you hit someone, it provides minimum compensation as a safety net; vehicle damage insurance specifically covers your own car—when my new car was hit by a tree branch in the community, I got it repaired without paying a dime thanks to this; third-party liability insurance covers damage to other people or property, like hitting a store sign; passenger liability insurance is for your passengers—I made sure to add this during the test drive, feeling more secure when driving with family. Now I think beginners should understand these early on, not just listen to sales pitches. A quick call to the insurance company clarifies everything, avoiding regrets when accidents happen.
