What Insurance Does a Sedan Need?
1 Answers
Sedans generally need to purchase three types of insurance: 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 required insurances, compulsory traffic insurance mandates that the insurance company must pay a certain amount to the affected party if any loss is caused to a third party, regardless of fault or whether compensation is required. However, in cases of at-fault traffic accidents, the cost may increase by 10%-30% based on annual occurrences or frequency. Vehicle Damage Insurance: Vehicle damage insurance is also typically necessary. For everyday issues like scratches, repair costs can be claimed from the insurance company. Especially after an accident, if the responsible party cannot be identified, the insurance company will cover 70% of the costs. However, compensation under vehicle damage insurance is based on the vehicle'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 customarily bear due to their own fault or negligence causing personal injury or property damage to a third party, with the insurer assuming this responsibility.
