What are the terms of car insurance?
3 Answers
Car insurance terms are as follows: Composition of the insurance contract: The insurance contract consists of insurance terms, application forms, insurance policies, endorsements, and other special agreements. Any agreement related to this insurance contract must be in written form. Classification of insurance terms: These insurance terms are divided into four parts: basic insurance, general terms, additional insurance, and definitions. Additional insurance cannot be purchased independently. The insurer assumes insurance liability according to the types of coverage. In case of any conflict between the additional insurance terms and the basic insurance terms, the additional insurance terms shall prevail. For matters not covered, the basic insurance terms shall apply. Unless otherwise specified in these insurance terms, the provisions and definitions of the general terms apply to any part of these insurance terms. Meaning of insurance terms: The term "motor vehicle" in these insurance terms refers to wheeled or tracked vehicles driven or towed by power devices on roads within the territory of the People's Republic of China (excluding Hong Kong, Macao, and Taiwan regions) for carrying passengers, transporting goods, or conducting special engineering operations, but does not include motorcycles and tractors.
Auto insurance terms are the detailed contract clauses you sign with the insurance company, primarily clarifying what situations warrant compensation and what don't. After studying numerous policies, I've found three key areas to focus on: The first is the coverage scope, such as whether they cover scratches, car accidents, or natural disasters. The second is the exclusions, like if you're driving under the influence or your vehicle hasn't passed its annual inspection—the insurer definitely won't pay. The third part is the claims process, such as reporting the accident within 48 hours and taking photos at the scene. There are also details many overlook, like whether rescue fees after natural disasters are covered or if repairs use original manufacturer parts or aftermarket parts—all specified in the terms. I recommend reviewing these three sections carefully before purchasing insurance to avoid disputes when issues arise.
Every time my friends ask me about insurance terms, I say just think of it as a game rulebook. Let's start with the most important claim rules: auto insurance is divided into compulsory traffic insurance and commercial insurance. Compulsory traffic insurance is mandatory by the state, mainly covering the other party's losses, and doesn't cover your own car damage; commercial insurance includes optional add-ons, such as car damage insurance for repairing your own vehicle, and third-party liability insurance for compensating others. The terms may have hidden levels like deductibles, for example, you have to bear 300 yuan yourself for minor accidents. I've seen many people who didn't understand the terms of theft insurance, only to find out after their car was stolen that it wouldn't be covered if no anti-theft device was installed. So before signing the contract, it's always a good idea to go through the bolded parts with a magnifying glass.
