Car insurance is a type of property insurance, also known as motor vehicle insurance. It refers to a commercial insurance that compensates for personal injury, death, or property damage caused by natural disasters or accidents involving motor vehicles. Below is an introduction to the roles of various types of car insurance: 1. Compulsory Traffic Insurance: This is a mandatory insurance required by the state, which compensates for the losses of third-party victims within the liability limits in the event of a traffic accident. 2. Third-Party Liability Insurance: Commonly referred to as 'Three-Party Insurance,' it compensates for the direct losses of third parties in accidents involving personal injury, death, or property damage. It serves as the strongest supplement to Compulsory Traffic Insurance in terms of coverage, with optional coverage ranging from hundreds of thousands to millions. 3. Vehicle Damage Insurance: This insurance compensates for the shortcomings of Compulsory Traffic Insurance and Third-Party Liability Insurance, which do not cover damages to the insured's own vehicle. Daily driving inevitably involves minor collisions, and without Vehicle Damage Insurance, the repair costs would have to be borne by the vehicle owner. 4. No-Deductible Insurance: Vehicle Damage Insurance and Third-Party Liability Insurance set different deductible rates based on accident liability. To minimize personal losses, vehicle owners can purchase No-Deductible Insurance as an add-on, transferring their share of the liability back to the insurance company. 5. Theft and Robbery Insurance: Comprehensive Theft and Robbery Insurance covers situations where the insured vehicle is stolen or robbed under non-intentional, non-deliberate, and non-violation circumstances. If the case remains unsolved after reporting and investigation within a certain period, the insurance company compensates for the corresponding losses.
