What are the main types of auto insurance to purchase?
2 Answers
The main types of auto insurance to purchase are compulsory traffic insurance, third-party liability insurance, vehicle damage insurance, and no-deductible coverage. Compulsory Traffic Insurance: Compulsory traffic insurance, also known as mandatory insurance, is a legally required coverage. It insures against bodily injury or property damage to victims (excluding passengers in the insured vehicle and the policyholder) caused by the insured vehicle in a road traffic accident. Driving without compulsory insurance is illegal and carries legal liabilities. Third-Party Liability Insurance: Third-party liability insurance covers bodily injury or direct property damage to third parties caused by the insured or their permitted qualified driver while using the insured vehicle. It serves as a supplement to compulsory insurance, covering amounts that exceed the compensation limit of compulsory traffic insurance. Vehicle Damage Insurance: Vehicle damage insurance covers damage to the insured vehicle's body and its components resulting from accidents while the insured or their permitted driver is operating the vehicle. No-Deductible Coverage: No-deductible coverage is an add-on to commercial auto insurance and cannot be purchased separately. It must be obtained as an addition to a primary insurance policy (such as vehicle damage insurance or third-party liability insurance).
When I first bought my new car, I researched a lot about car insurance types. You must buy compulsory traffic insurance—it’s required by law, and skipping it is illegal and comes with fines. Among commercial insurances, vehicle damage insurance is especially important—if your car gets into an accident, it covers repair costs. Third-party liability insurance is also essential, and it’s best to choose a higher coverage, around 2 million, to protect against damaging others' property or injuring people. Passenger liability insurance is a good addition to protect yourself and passengers. I highly recommend getting a no-deductible insurance to avoid out-of-pocket expenses. You can also add theft insurance if you live in a high-crime area. Overall, don’t skip key coverages just to save money—safety first, as small expenses can prevent big losses. Remember to review policy changes before renewing each year, and it’s worth comparing prices online.
