What are the types of car insurance?
1 Answers
Car insurance generally includes compulsory traffic insurance and commercial insurance. Commercial insurance consists of two parts: basic insurance and additional insurance. Based on the scope of coverage, car insurance can also be categorized into basic insurance and additional insurance. Basic insurance includes third-party liability insurance (third-party insurance), vehicle damage insurance (comprehensive coverage), passenger liability insurance (driver liability insurance and passenger liability insurance), and full vehicle theft insurance (theft coverage). Below is additional information: 1. Compulsory Traffic Insurance: This is a mandatory insurance in China that all vehicles must purchase. In the event of a traffic accident, the insurance company can only compensate the party that was hit, meaning the conditions for compensation are limited. Additionally, without compulsory traffic insurance, the vehicle will lose its eligibility for annual inspection. 2. Third-Party Commercial Liability Insurance: Most car owners opt for both compulsory traffic insurance and third-party insurance. Since the compensation amount from compulsory traffic insurance is limited, purchasing third-party insurance can cover the portion that exceeds the compulsory traffic insurance's limit. 3. No-Deductible Insurance: Unlike the first two types, which are independent basic insurances, no-deductible insurance is an additional coverage for cars. Its purpose is that if an accident occurs and compensation is required, the insurance company would normally cover 80% (e.g., 800 yuan) of the loss, while the remaining 20% would be the policyholder's responsibility. However, with no-deductible insurance, the remaining 20% is also transferred to the insurance company.
