What Does Basic Vehicle Insurance Cover?
2 Answers
Basic vehicle insurance includes compulsory traffic accident liability insurance, third-party liability insurance, and vehicle damage insurance. Below is relevant information about basic vehicle insurance: 1. Compulsory Traffic Accident Liability Insurance: This is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, or property losses of victims caused by the insured motor vehicle in a road traffic accident, within the liability limits. 2. Additional Insurance: Additional insurance refers to coverage that cannot be purchased or underwritten alone and must be attached to a primary insurance policy. When the primary insurance becomes invalid, is terminated, or expires, the additional insurance coverage also ceases or is suspended.
The basic vehicle insurance mainly refers to compulsory traffic liability insurance, which is a mandatory liability coverage. When I first bought my car, I didn’t really understand its purpose—it essentially protects others’ rights. If I accidentally hit someone or damaged another car, the insurance company would compensate the other party, but it wouldn’t cover my own car’s repair costs. This is something you can’t skip—the DMV will block your vehicle registration without it, and you can’t drive without the certificate. I remember once almost forgetting to renew it, but luckily a friend reminded me, or I would’ve been driving illegally. As an experienced driver, I consider this basic insurance a safety net. I advise new drivers not to skimp on this cost—pairing it with commercial insurance like collision coverage offers more peace of mind, so you’re not caught off guard in an accident. Regularly checking your policy details is also practical.
