What Does Comprehensive Car Insurance Cover?
2 Answers
Since the concept of comprehensive insurance is very vague, there is originally no such term as comprehensive insurance in the field of auto insurance. It is mostly an insurance package offered by insurance companies, so the types of coverage included in comprehensive insurance packages from different insurance companies may vary. Generally, comprehensive commercial auto insurance typically refers to the following items: Vehicle Damage Insurance: Vehicle damage insurance covers the policyholder in the event of a traffic accident while driving, resulting in vehicle damage, with the insurance company providing compensation within a reasonable range. After the auto insurance reform, the coverage of additional insurances such as spontaneous combustion insurance, water damage insurance, glass insurance, and theft insurance has been incorporated into vehicle damage insurance. Third-Party Liability Insurance: In the event of causing harm to others or damage to others' property while driving, the insurance company compensates according to the agreement. You can purchase coverage ranging from 500,000 to 2 million based on your needs. Passenger Liability Insurance: This is an additional insurance to third-party liability insurance, but it is responsible for compensating the costs of injuries or deaths of passengers in the vehicle caused by a traffic accident.
Last time I renewed my insurance, I specifically researched comprehensive coverage. Strictly speaking, there's no legally defined 'full coverage'—it usually refers to a package sold by 4S shops combining compulsory traffic insurance with four major commercial policies. Compulsory insurance covers others but not your own vehicle, so you must pair it with vehicle damage insurance for your car's repairs. For third-party liability insurance, it's now recommended to get at least 3 million coverage to avoid bankruptcy in case of hitting a luxury car. Seat insurance per person is cost-ineffective; buying separate passenger accident coverage is more economical. Don't forget to add no-deductible coverage, otherwise insurers can deduct 15% of repair costs during claims. Tire-only damage and scratches usually require extra fees for coverage, and there's also separate glass insurance.
