What are the four basic vehicle insurances
3 Answers
Basic insurances include compulsory traffic insurance, third-party liability insurance, and vehicle damage insurance. Below are the detailed introductions: 1. Compulsory Insurance: Compulsory traffic insurance is the most basic vehicle insurance, which is mandatory by national regulations. The most important part belongs to commercial insurance, and most car owners purchase vehicle damage insurance for their cars, as unexpected situations involving vehicles are relatively common. 2. Basic Insurances: Basic insurances are generally divided into vehicle damage insurance and third-party liability insurance. Third-party liability insurance covers compensation by the insurance company when the insured causes accidental injury or property loss to a third party while using the insured vehicle. Vehicle damage insurance covers losses caused by emergencies or natural disasters such as rain, snow, or hail, for which the insurance company will provide compensation.
I usually drive to and from work, and I pay quite a bit of attention to car insurance. The basic insurance mainly includes four types: The first is compulsory traffic insurance, which is mandatory by the government. In case of an accident, it covers basic medical and property damage costs for the other party, serving as a minimum safeguard. The second is vehicle damage insurance, which covers the repair costs of your own car, such as hitting a tree or getting a scratch, so you don’t have to pay out of pocket. The third is third-party liability insurance, and I recommend getting a higher coverage amount to cover high compensation costs to third parties, in case you accidentally injure someone and face big trouble. The fourth is passenger liability insurance, which protects the safety of the driver and passengers in the car, ensuring someone takes care of injuries in case of a collision. These insurance types combined don’t cost much in premiums but can save a lot of hassle, especially in cities where the accident rate is high. I check my policy annually to make sure nothing is missing.
Having driven for over twenty years, experience has taught me that the core of basic vehicle insurance consists of those four types. Compulsory traffic insurance is the foundation, ensuring the minimum compensation amount; vehicle damage insurance covers damages to your own car, covering all repair costs; third-party liability insurance handles third-party liabilities, and selecting sufficient coverage can prevent financial ruin; passenger liability insurance covers personal injuries inside the vehicle. Don't skimp on insurance to save money, or you'll face even more painful out-of-pocket expenses after an accident. I still remember a neighbor who rear-ended someone without third-party liability insurance and ended up paying tens of thousands, nearly going bankrupt. Regularly evaluating coverage and adjusting it based on the new car's value and the old car's condition is wiser.
