What are the types of auto insurance products?
3 Answers
Auto insurance products include Compulsory Traffic Accident Liability Insurance, Third-Party Liability Insurance, and Vehicle Damage Insurance, among others. Compulsory Traffic Accident Liability Insurance: This is a mandatory liability insurance where the insurance company compensates for bodily injury, death, or property damage caused to victims (excluding the vehicle's occupants and the insured) in road traffic accidents involving the insured vehicle, within the liability limits. Compulsory Traffic Accident Liability Insurance is China's first mandatory insurance system implemented under national law. Third-Party Liability Insurance: This refers to insurance where the insurer compensates for direct bodily injury, death, or property damage suffered by a third party due to an accident caused by a qualified driver permitted by the insured while using the insured vehicle. The compensation amount, which the insured is legally obligated to pay, is covered by the insurer according to the terms of the insurance contract. Vehicle Damage Insurance: This insurance covers the loss or damage to the insured vehicle caused by natural disasters (excluding earthquakes) or accidents within the scope of insurance liability. The insurer provides compensation based on the terms stipulated in the insurance contract.
There are quite a few types of car insurance. When I bought my car, I found that the common ones include compulsory traffic insurance, which is a government-mandated policy covering basic third-party liability compensation. Third-party liability insurance is also very important—for instance, if you hit someone or damage property, it covers the compensation to prevent emptying your wallet. Vehicle damage insurance repairs your own car's damages, such as those from accidents or natural disasters. Theft insurance addresses the risk of vehicle theft, especially useful for friends living in cities. Passenger liability insurance protects the safety of passengers, a must-have for family trips. Additionally, there's glass insurance specifically for window repairs, spontaneous combustion insurance for issues with older cars, no-deductible insurance to reduce out-of-pocket expenses, and scratch insurance to cover minor scrapes. Choosing the right combination can save both worry and money. I recommend beginners start with the basic three.
There are many car insurance options, and as an average car owner, I focus on the practical ones. Compulsory traffic insurance is the foundation and non-negotiable. Third-party liability insurance covers compensation for the other party, and choosing a higher coverage is safer. Vehicle damage insurance protects your own car from damages like hitting a tree or flooding. Theft insurance is optional, depending on your area's crime rate. Passenger liability insurance adds peace of mind for family trips. Glass and scratch insurance are worth considering for new cars—premiums are low but coverage is specific. I usually don’t buy too much, prioritizing cost savings with a basic package. Nowadays, selecting insurance online is very convenient, saving time and hassle. Remember, driving safely can lower your premiums.
