What Does Full Coverage for a New Car Include?
2 Answers
Vehicle full coverage generally includes compulsory traffic insurance and four main commercial insurances, namely third-party liability insurance, vehicle damage insurance, passenger liability insurance, and theft insurance. If the car owner has good financial conditions, they can also purchase some additional insurances, such as scratch insurance, glass insurance, and spontaneous combustion insurance. Compulsory Traffic Insurance: It compensates for personal injury, death, and property damage caused by the insured vehicle in a road traffic accident to the victim (excluding the vehicle occupants and the insured) within the liability limits. Vehicle Damage Insurance: It is responsible for compensating for vehicle damage and necessary, reasonable rescue expenses caused by natural disasters and accidents during the use of the vehicle. Third-Party Liability Insurance: It is responsible for compensating for direct personal injury, death, or property damage suffered by a third party due to an accident during the use of the vehicle. It compensates for the amount that exceeds the sub-limits of compulsory traffic insurance that the insured is legally obligated to pay.
When I first got my car, I also researched comprehensive insurance. Simply put, it's compulsory traffic insurance plus major commercial insurance. Compulsory insurance is mandatory and mainly covers others. The most important part of commercial insurance is vehicle damage insurance, which covers repair costs, and now it even includes theft, fire, and other risks. Third-party liability insurance is recommended to be over 2 million, as there are many luxury cars on the road, and you might not afford the compensation in case of an accident. There's also passenger liability insurance to protect yourself and your passengers. Scratch insurance is quite useful for new cars, but it needs to be added separately. Glass insurance is also practical, as it's common for small stones to hit the windshield on highways. Combining these basically covers everything, but the specifics depend on the insurance company's packages. For new drivers in their first year, it's advisable to get more coverage, as scratches on a new car can be heartbreaking.
