What Insurance Policies Are Needed When Buying a Car?
1 Answers
First and foremost, compulsory traffic insurance is a must, as it is mandated by the state. Additionally, vehicle damage insurance, third-party liability insurance, and no-deductible insurance are essential. Below are the details of these auto insurance policies: 1. Vehicle Damage Insurance: The most widely used type of auto insurance, it covers the loss of your own vehicle in the event of a traffic accident, such as falling objects or unexpected incidents. It is recommended to purchase coverage equal to the value of your vehicle. 2. Third-Party Liability Insurance: Often referred to as 'third-party insurance,' it covers the legal liability of the insured driver for bodily injury or property damage to a third party caused by the insured vehicle. Similar to compulsory traffic insurance, it can be seen as a supplement to the coverage limits of compulsory insurance. If you collide with a luxury car, the coverage provided by compulsory insurance alone may be insufficient, and the resulting losses could be substantial. 3. No-Deductible Insurance: After an accident, the insurance company may impose a deductible based on the policyholder's liability, with a maximum deductible of 20% for full liability and a minimum of 5% for partial liability. No-deductible insurance is an additional policy that eliminates these deductibles and can only be purchased as an add-on to a primary insurance policy.
