What Does Full Coverage for a New Car Include?
1 Answers
Vehicle full coverage includes compulsory traffic insurance and four main commercial insurances: third-party liability insurance, vehicle damage insurance, onboard personnel insurance, and theft insurance. Additional optional insurances can also be purchased, such as scratch insurance, glass insurance, and spontaneous combustion insurance. Among auto insurances, compulsory traffic insurance is mandatory, while commercial insurances are voluntary. Below is an introduction to the various types of full coverage auto insurance: Compulsory Traffic Insurance: A mandatory insurance type required by national regulations. Third-Party Liability Insurance: If the insured vehicle causes bodily injury or direct property damage to others due to the owner's fault in an accident, the insurer will compensate according to the terms of the insurance contract. Vehicle Damage Insurance: If the insured vehicle suffers damage due to natural disasters (excluding earthquakes) or accidents covered by the insurance policy, the insurer will compensate according to the terms of the insurance contract. Full Theft Insurance: Covers the loss of the insured vehicle if it is stolen. Onboard Personnel Liability Insurance: If an accident causes injury to the people onboard the vehicle, the insurance company will be responsible for compensation.
