What Does Full Coverage for a New Car Include?
4 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.
I recently bought a new car and researched the coverage of comprehensive insurance, which generally includes third-party liability insurance (compensation in case of damage to others or property), vehicle damage insurance (repairs for your own car), theft insurance (compensation if the car is stolen), and glass breakage insurance (replacement for damaged windows) as basic components. You can also add optional coverage like spontaneous combustion insurance (for the risk of new car self-ignition) and zero-deductible insurance (reducing out-of-pocket expenses). Since new cars have high value, opting for comprehensive coverage provides peace of mind and avoids hassle in case of accidents. Repair costs can be significant, so I recommend new car owners prioritize comprehensive insurance packages and choose appropriate coverage limits.
As a budget-conscious person, I believe comprehensive insurance, though expensive, is worth analyzing. Core coverages are essential: third-party liability insurance covers damages to others in an accident, vehicle damage insurance protects your own car's repairs, and theft insurance can be optional depending on parking safety. Additional coverages like glass insurance are practical and affordable, especially for frequent highway driving; natural disaster insurance is more beneficial for new cars. Don't overlook the deductible clauses—the out-of-pocket portion can be reduced with zero-deductible insurance. In summary, for a new car, prioritize basic coverages to ensure a reasonable budget, avoiding unnecessary expenses while guarding against major risks.
New cars must be fully insured! It covers key risks: third-party liability insurance compensates for others' injuries, car damage insurance repairs your own vehicle, theft insurance prevents loss, and glass breakage insurance protects windows. Although the probability of accidents with new cars is low, the losses can be huge. Insuring these can reduce the burden in case of an accident. Don't set the coverage too low; ensure safety comes first, and don't gamble with luck to save a few hundred bucks.
