What Insurance Do You Need to Buy for a Car?
1 Answers
Generally, car insurance requires the purchase of compulsory traffic insurance, vehicle damage insurance, and third-party liability insurance. Insurance should be selected based on your actual situation. Compulsory Traffic Insurance: As one of the legally mandated insurances, compulsory traffic insurance stipulates that if a third party suffers losses, regardless of fault or the need for compensation, the insurance company must pay a certain amount to the affected party. However, in cases of at-fault accidents, the cost may increase by 10%-30% based on the year or frequency of occurrence. Vehicle Damage Insurance: Vehicle damage insurance is also typically a must-have. For everyday issues like scratches, repair costs can be reimbursed by the insurance company. Especially in accidents where the responsible party cannot be identified, the insurance company will cover 70% of the costs. However, compensation under vehicle damage insurance is calculated based on the car's usage time and depreciation, with an annual depreciation rate usually set at 7.2%. Third-Party Liability Insurance: Fully known as third-party liability insurance, it is a type of liability insurance. It covers the financial compensation that the insured must legally or conventionally bear due to their own fault or negligence causing personal injury or property damage to a third party.
