What are the types of car insurance?
1 Answers
Car insurance generally includes compulsory traffic insurance and commercial insurance, with the latter consisting of basic insurance and additional insurance. Below is extended information: Compulsory Traffic Insurance: Compulsory traffic insurance is mandatory in China, and all vehicles must purchase this type of insurance. 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. Third-Party Commercial Liability Insurance: Most car owners opt for both compulsory traffic insurance and third-party liability insurance. Since the compensation amount from compulsory traffic insurance is limited, purchasing third-party liability insurance can cover the portion that exceeds the compulsory traffic insurance's compensation limit.