What Does Car Insurance Generally Cover?
2 Answers
Car insurance generally covers compulsory traffic liability insurance, vehicle damage insurance, third-party liability insurance, spontaneous combustion insurance, glass insurance, theft insurance, scratch insurance, driver and passenger insurance, and no-deductible insurance. Below is more information about car insurance: 1. Introduction: Vehicle insurance, also known as motor vehicle insurance or car insurance, refers to a type of commercial insurance that compensates for personal injuries, deaths, or property losses caused by natural disasters or accidents involving motor vehicles. Car insurance is a form of property insurance and is relatively new in the field of property insurance, as it emerged and developed alongside the advent and popularization of automobiles. Unlike modern motor vehicle insurance, early car insurance primarily focused on third-party liability insurance and gradually expanded to cover risks such as collision damage to the vehicle body. 2. Basic Functions: The fundamental functions of insurance, including organizing economic compensation and fulfilling insurance payouts, also apply to motor vehicle insurance.
When I first bought a car, I researched auto insurance, which generally covers common risks you might encounter. The most basic is compulsory insurance, which is legally required. It covers payments when you injure others, such as hitting a pedestrian. Then there's third-party liability insurance, which helps if you need to compensate the other party for vehicle or property damage after an accident. Vehicle damage insurance is also important—if your car is damaged by natural disasters or accidents, like being crushed by a falling tree, this covers repairs or a replacement. Optional add-ons like theft insurance or separate glass breakage insurance are available, but I don’t recommend adding them randomly. It’s better to assess your needs to save money. I usually drive carefully and stay alert to reduce risks and lower premiums, as auto insurance costs are high, but it’s very practical in case of accidents, especially major ones, saving a lot of hassle.
