What does comprehensive car insurance mean?
3 Answers
Comprehensive car insurance is a colloquial term, as there is currently no standardized definition of 'comprehensive insurance' in the insurance industry. Generally, comprehensive insurance includes eight types of coverage: compulsory traffic insurance, vehicle damage insurance, commercial third-party liability insurance, passenger liability insurance, theft insurance, scratch insurance, standalone glass breakage insurance, and no-deductible insurance. Below is an introduction to each type of coverage: 1. Compulsory Traffic Insurance. This is a mandatory insurance required by Chinese laws and regulations. In the event of an accident causing personal or property damage, the insurance company must provide compensation within specified limits and proportions. 2. Vehicle Damage Insurance. This covers losses to the vehicle caused by natural disasters or accidents, with the insurance company compensating a certain proportion of rescue costs. 3. Third-Party Liability Insurance. This covers property and personal losses suffered by third parties due to accidents involving the insured vehicle, with the insurer paying compensation as per the contract. 4. Passenger Liability Insurance. This covers personal injuries to passengers in the insured vehicle due to accidents, with the insurer providing compensation. 5. Theft Insurance. This compensates for financial losses due to vehicle theft. 6. Scratch Insurance. This covers damage to the vehicle without obvious collision marks during use, with the insurer providing compensation. 7. Standalone Glass Breakage Insurance. This covers situations where the vehicle's glass breaks independently during use.
I understand that comprehensive car insurance is a package that offers extensive coverage. It bundles the mandatory traffic insurance required by the state with various commercial insurance options. Basic inclusions are coverage for damage to your own vehicle (vehicle damage insurance), liability for hitting others (third-party liability insurance), and coverage for passenger injuries (seat insurance). Some comprehensive packages also include theft insurance and glass breakage coverage. When I bought my new car, the salesperson said getting comprehensive insurance right away was the most hassle-free option. Although it costs a few thousand more in premiums each year, it saves a lot of headaches in case of accidents like scratches or collisions. Recently, a colleague backed into a wall, and the insurance company covered the entire repair cost without them paying a cent.
My family bought the full coverage insurance for that SUV, which is essentially a bundled package from the insurance company. In addition to the compulsory traffic insurance required by law, it includes several key commercial insurances: the vehicle damage insurance covers repairs for your own car, the third-party liability insurance compensates for others' losses, and the passenger seat insurance takes care of the safety of passengers in your vehicle. I remember last summer when hail damaged the car roof, the insurance company directly replaced the entire roof. However, it's important to note that full coverage doesn't literally mean everything is covered; for instance, standalone tire damage or aftermarket modifications are not included. The premium is indeed much higher than just buying the compulsory insurance, but for someone like me who commutes 50 kilometers every day, I really can't afford to skimp on this expense.
