What is the purpose of buying car insurance?
3 Answers
Here are the functions of car insurance: 1. Compulsory traffic insurance: Used to protect the rights and interests of victims in traffic accidents (excluding occupants of the insured vehicle and the policyholder). 2. Vehicle damage insurance: Covers the losses of your own vehicle. 3. Third-party liability insurance: Primarily protects against personal injuries, deaths, and property damage to third parties in traffic accidents. 4. Passenger liability insurance: Covers passengers and the driver in the vehicle. In fact, the coverage of this insurance overlaps somewhat with accident insurance, but it's there in case passengers happen not to have accident insurance.
Last time my car skidded off the road in the rain, and the entire front end was severely damaged. Fortunately, I had comprehensive insurance, which not only covered all the repair costs but also paid for the damages to the other vehicle, saving me from bankruptcy. Without insurance, the repairs alone would have cost tens of thousands, wiping out all my family savings. More importantly, compulsory traffic insurance is legally required—otherwise, you could face fines, vehicle impoundment, or even massive compensation liabilities in case of personal injury accidents. I see car insurance as a safety net, protecting you from financial collapse due to unexpected accidents, especially for those with mortgages or families, ensuring life isn’t disrupted. In daily scenarios like minor scratches or theft, insurance also provides quick claims, reducing unnecessary stress.
As an urban office worker who commutes by car every day, the roads are crowded with vehicles and pedestrians, making minor incidents like hitting a lamppost or rear-ending another car quite probable. That's where insurance comes in handy. It not only covers repair costs but also includes theft protection. There have been several cases in my neighborhood where car windows were smashed, and having insurance means I don’t have to pay out of pocket for glass replacement. More importantly, third-party liability insurance is crucial. If I accidentally hit a pedestrian or another vehicle, the compensation can be directly covered by the insurance, preventing personal bankruptcy. I feel the small monthly premium is insignificant compared to the potential savings of tens of thousands in case of an accident—it’s a classic case of small investment for big protection. Additional services like free towing are also incredibly useful. Just last week, my battery died, and I called for roadside assistance. In short, insurance makes driving more secure by reasonably distributing risks.
