What are the types of car insurance?
3 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.
When I first got my driver's license, I was completely clueless about car insurance, but I gradually figured it out. There are several main types: Liability insurance is the most basic, covering repairs to someone else's car or medical bills if you cause an accident; Collision insurance reimburses you for repairs when your own car hits something; Comprehensive insurance sounds fancy but actually protects against theft, fire, floods, and other unexpected events; Uninsured motorist coverage comes in handy when dealing with drivers who don't have insurance; PIP insurance covers medical expenses for injuries to people in your car. The first time I chose insurance, I went cheap with just liability coverage and nearly got burned. Now I know better—young drivers should opt for more coverage, as safety comes first. My advice for new drivers: start with liability insurance and gradually add options, and don't hesitate to consult professionals.
Having driven for over a decade, I've got car insurance figured out. Liability coverage is a must—it's legally required to cover others' damages in an accident. Collision coverage speeds up repairs when your own car's damaged, especially crucial for new vehicles. Comprehensive coverage handles those random incidents like vandalism or natural disasters. Uninsured motorist coverage is practical too, protecting you from reckless drivers. As for PIP, it covers your medical expenses. Prices vary—young drivers pay more, while seasoned ones can negotiate. Don’t just focus on price tags when choosing insurance; scrutinize the terms and compare coverage across companies. Regularly check for discounts—why not use the savings for a gas refill? Bottom line: peace of mind on the road matters most.
