What are the four basic types of car insurance?
1 Answers
Vehicle insurance's four basic types refer to vehicle damage insurance, third-party liability insurance, no-deductible insurance, and seat insurance. Below is a detailed introduction to the four basic types of vehicle insurance: 1. Vehicle damage insurance: Vehicle damage insurance is a type of commercial auto insurance where the insurer compensates within a reasonable range for damage to the insured vehicle caused by an insurance accident while the vehicle is being used by the insured or an authorized driver. 2. Third-party liability insurance: This refers to the insurer's responsibility to compensate for economic liabilities that the insured must legally bear when an accident occurs during the use of the insured vehicle by the insured or an authorized driver, resulting in bodily injury, death, or direct property damage to a third party. 3. No-deductible insurance: No-deductible insurance is an additional type of commercial insurance. As an add-on, no-deductible insurance requires the purchase of a 'primary insurance' as a prerequisite and cannot be purchased separately. 4. Seat insurance: Seat insurance refers to compensation by the insurer for medical expenses or accident payments when an accident involving the insured vehicle results in injury or death to the driver or passengers.
