What insurance policies are needed for a sedan?
1 Answers
Generally, sedans require 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 mandated insurances, compulsory traffic insurance requires the insurance company to compensate the affected party a certain amount if any loss is caused to a third party, regardless of fault or the need for compensation. However, in cases of at-fault traffic accidents, the cost may increase by 10%-30% based on the year or frequency of incidents. Vehicle Damage Insurance: Vehicle damage insurance is also typically necessary. 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 vehicle's usage time and depreciation, with an annual depreciation rate typically set at 7.2%. Third-Party Liability Insurance: Fully known as third-party liability insurance, this is a type of liability insurance. It covers the financial compensation that the insured must legally or conventionally bear due to their own faults or negligence causing personal injury or property damage to a third party, which is then assumed by the insurer.
