What are the four mandatory insurances for vehicles?
2 Answers
Compulsory Traffic Accident Liability Insurance is mandated by the state, and vehicles cannot be driven on the road without it. The other three non-mandatory insurances are Vehicle Damage Insurance, Third-Party Liability Insurance, and Passenger Liability Insurance, which can be purchased based on individual needs. Below are detailed explanations of each insurance type: Compulsory Traffic Accident Liability Insurance: This insurance ensures that the insurance company compensates the victim according to the contract after an accident. However, it is important to note that the victim does not include the policyholder or the passengers inside the vehicle. Vehicle Damage Insurance: Vehicle Damage Insurance is a type of commercial auto insurance. It covers damages to the vehicle caused by accidents involving the policyholder or an authorized qualified driver. The insurance company will compensate within the scope of liability. The coverage of Vehicle Damage Insurance has been expanded to include vehicle self-ignition, standalone glass breakage, engine water damage, vehicle theft, no-deductible coverage, designated repair shops, and third-party liability for untraceable accidents. Third-Party Liability Insurance: This insurance covers third parties other than the vehicle owner and the insurance company. Accidents where the owner hits another driver are inevitable while driving. Purchasing this insurance allows the insurance company to bear part of the compensation according to regulations, thereby reducing the owner's financial burden. Passenger Liability Insurance: Passengers are often present in the vehicle. If an accident occurs, the insurance company will compensate according to the contract if this insurance is purchased. Important considerations when purchasing auto insurance: Insurance Lapse: A lapse occurs when the vehicle's insurance coverage period has expired without renewal. If insurance is purchased after a lapse, the vehicle must be inspected by the insurance company. Purchase Timing: Auto insurance can generally be purchased after obtaining the new vehicle's certification. For renewal, insurance can be purchased within one month before the expiration of the previous policy. Coverage Selection: New vehicles should ideally have comprehensive coverage, especially for new drivers. This includes Vehicle Damage, Third-Party Liability, Theft, Standalone Paint, and Standalone Glass coverage, among others. However, this should also be based on individual financial circumstances. Choosing a Reputable Company: It is advisable to avoid small insurance companies due to their lack of service guarantees and unreasonable pricing. Opt for well-known large companies with good reputations. You can visit the websites of major insurance companies for more information. Policy Terms: When purchasing auto insurance, inquire about basic policy terms, especially the exclusions, to understand under what circumstances the insurance company will not compensate. This helps prevent disputes in the future.
Having driven for over a decade, I believe there are four types of insurance that are particularly essential to purchase. First is compulsory traffic insurance, which is legally mandated—it covers others' losses in case of an accident, and you can't even drive without it. Second is commercial third-party liability insurance, for which I opt for at least 500,000 coverage to avoid hefty out-of-pocket payments in accidents, especially suitable for urban driving where mishaps are common. Third is vehicle damage insurance, which covers repair costs for your own car, whether it's minor scratches or major collisions, saving both hassle and money. Lastly, there's the no-deductible insurance, which reduces the out-of-pocket portion of claims, offering great value for money. Combined, these policies provide comprehensive coverage for driving risks, ensuring both cost-efficiency and compliance. Always review insurance company terms thoroughly to guarantee full coverage.
