What Does Commercial Auto Insurance Include?
3 Answers
Commercial auto insurance includes the following types: 1. Collision Coverage: Used to compensate for losses to the vehicle itself caused by natural disasters and accidents. It is recommended for novice drivers to purchase. 2. Third-Party Liability Insurance: Designed to compensate for losses of third-party personal injuries or deaths caused by the vehicle owner, providing protection for both oneself and others. 3. No-Fault Insurance: An additional coverage that transfers the responsibility the owner needs to bear to the insurance company, reducing the owner's losses. It is advisable to purchase no-fault insurance if both collision coverage and third-party liability insurance are bought. 4. Theft and Robbery Coverage: Used to compensate for damages caused by vehicle theft, robbery, or hijacking. It is recommended for new car owners without garages. 5. Spontaneous Combustion Insurance: Used to compensate for losses caused by fires due to the vehicle's own electrical or wiring issues, suitable for older vehicles. 6. Scratch Damage Insurance: Used to compensate for losses caused by intentional, malicious, or accidental scratches during driving.
Commercial auto insurance mainly includes the following categories: The most basic third-party liability insurance covers compensation for damages when you hit others, and it's recommended to have a coverage of no less than 2 million. Vehicle damage insurance is the most practical, covering scratches, collisions, and extending to water damage and spontaneous combustion—repairing your own car relies entirely on it. Passenger liability insurance covers medical expenses for people in your own car, but the compensation is limited, so it can be supplemented with driver and passenger insurance. Then there are additional insurances, such as wheel theft insurance for cases where the responsible party cannot be found, scratch insurance which is suitable for new cars, and mental distress insurance which is quite worthwhile for just a few dozen yuan extra. Last time I modified my car lights without separately insuring them under the new equipment insurance, I suffered a loss during the claim. Friends who want to play with modifications should pay attention to this. Medical expenses outside the medical insurance liability insurance is also crucial; with this insurance, you don't have to worry about paying out of pocket for non-reimbursable medicines when injuring someone.
Nowadays, purchasing commercial insurance for your car is as flexible as building blocks. The core mandatory options are third-party liability insurance and vehicle damage insurance, which are like your left and right guardians while driving—the former prevents bankruptcy from compensation, while the latter ensures repair freedom for your car. It's advisable to add passenger liability insurance, as accidents involving friends who ride with you can be distressing. Extended coverage depends on the situation: those living in southern flood-prone areas should remember to add water damage coverage, older cars should consider spontaneous combustion insurance, and new drivers are better off adding scratch insurance. Pay special attention that the no-deductible coverage is now bundled into vehicle damage insurance, but adding an absolute deductible clause can save on premiums, though claims will be discounted. My neighbor didn’t buy wheel insurance and ended up having all four wheels stolen overnight—that’s what you call suffering in silence.
