What are the three essential insurances for private cars?
2 Answers
There are three essential insurances for private cars: 1. Compulsory Traffic Accident Liability Insurance for Motor Vehicles, which is mandatory for road use; 2. Third-party Liability Insurance for Motor Vehicles, offering high compensation amounts, typically categorized into 500,000, 1 million, and 1.5 million based on the premium paid; 3. Motor Vehicle Damage Insurance, which covers claims for accidental total loss of the vehicle. Key considerations when purchasing car insurance include: 1. In addition to compulsory insurance, it is advisable to purchase Vehicle Damage Insurance and Commercial Third-party Liability Insurance to minimize financial losses in the event of an accident; 2. Careful selection of purchasing channels is crucial, ensuring the insurance company is legally qualified and the agent possesses valid professional qualifications, practice certificates, and a formal agency contract with the insurer.
When I first got my private car, I was a bit overwhelmed researching insurance. Now I know the three must-have insurances are compulsory traffic insurance, third-party liability insurance, and vehicle damage insurance. Compulsory traffic insurance is legally required - it covers others' medical expenses in accidents, and you'll be fined if caught driving without it. I opted for high coverage on third-party liability insurance, which compensates for property damage (like cars or houses) and provides additional personal injury compensation to third parties. Vehicle damage insurance covers repair costs when my own car gets damaged in collisions or natural disasters. To save money, I initially bought a cheaper version without full coverage, but ended up paying thousands out of pocket for minor scratches - a painful lesson. Regularly reviewing policies is crucial. Though premiums cost a few thousand annually, they prevent bankruptcy risks from major accidents and give me peace of mind while driving.
