What Does Comprehensive Auto Insurance Cover?
3 Answers
Comprehensive auto insurance includes compulsory traffic liability insurance, spontaneous combustion loss insurance, and vehicle damage insurance. Below are the details of these coverages: Compulsory Traffic Liability Insurance: Compulsory traffic liability insurance is a mandatory insurance type stipulated by the state. Even if a vehicle does not purchase comprehensive insurance, this coverage is still required. Vehicles that fail to purchase compulsory traffic liability insurance as required may be impounded by traffic management authorities and fined twice the amount of the premium. Spontaneous Combustion Loss Insurance: Vehicle damage insurance, commonly referred to as collision coverage, generally refers to compensation provided by the insurance company for losses caused by natural disasters or accidents within the scope of insurance liability. Vehicle Damage Insurance: When a vehicle spontaneously combusts due to electrical circuit or fuel supply system issues, the insurance company will provide compensation.
I've been driving for 15 years and know that comprehensive insurance can really save a lot of hassle. It usually includes a combination of compulsory traffic insurance and commercial insurance. Compulsory traffic insurance is legally required and only covers basic accident liability. Commercial insurance is the main part, such as vehicle damage insurance, which covers the cost of repairing your own car; third-party liability insurance, which covers losses caused to others; passenger liability insurance, which provides medical coverage for the driver and passengers; and additional insurances like theft insurance and glass breakage insurance, which are more reliable depending on the condition of the car. The advantage is that you don't have to pay out of pocket after an accident, especially for minor collisions where repairs can be quickly handled through insurance. It's recommended to choose higher coverage amounts, like third-party liability insurance of over 2 million, so you won't panic even if you hit a luxury car in a big city. When driving in rainy or snowy conditions, having comprehensive insurance gives you much more peace of mind. Don't skimp on those premiums and end up suffering big losses.
When I first bought a car, I wondered if comprehensive insurance was worth it. It includes compulsory traffic insurance plus commercial insurance. Compulsory insurance is mandatory but has low coverage. The core of commercial insurance consists of vehicle damage insurance (covering your own car's damage), third-party liability insurance (compensating others' losses), and passenger liability insurance (protecting passengers). It's best to add a no-deductible clause to reduce out-of-pocket expenses. Spend some time comparing quotes online - prices vary significantly between insurers. Don't skip essential coverage to save money; getting rear-ended without third-party coverage could be disastrous. In reality, paying a few hundred monthly for full coverage brings peace of mind that's far more economical than footing repair bills.
