What Types of Auto Insurance Are There?
2 Answers
Auto insurance is mainly divided into basic insurance and additional insurance. Basic insurance and additional insurance content: Basic insurance includes compulsory traffic insurance, third-party liability insurance, and vehicle damage insurance; additional insurance includes comprehensive theft insurance, on-board liability insurance, no-fault liability insurance, cargo dropping liability insurance, standalone glass breakage insurance, vehicle downtime loss insurance, spontaneous combustion loss insurance, new equipment loss insurance, and special deductible waiver insurance. The role of auto insurance: Promotes the development of the automotive industry and expands the demand for vehicles; the development of auto insurance business itself has played a strong role in promoting the development of the automotive industry, to some extent increasing consumers' desire to purchase vehicles and expanding the demand for vehicles. Stabilizes social public order; vehicle owners are willing to pay a certain premium to transfer the risks associated with using a vehicle. In the event of a vehicle accident, they receive financial compensation from the insurance company. Conducting auto insurance is beneficial to social stability and protects the legitimate rights and interests of the parties to the insurance contract. Promotes the improvement of vehicle safety performance; insurance companies, in order to effectively control operating costs and risks, will inevitably strengthen the management of accident vehicle repairs in addition to enhancing their own business operations management, to some extent improving the quality management level of vehicle repairs.
There are actually quite a few types of car insurance. When I first bought a car, I did a lot of research. The most basic one is called compulsory traffic insurance, which is mandatory by the state. If you don't buy it, you'll be fined. It covers basic liabilities, such as paying some medical expenses if you injure someone in an accident. The second is vehicle damage insurance, which covers your own car. If you accidentally scratch it or get into an accident, the repair costs can be reimbursed. Third-party liability insurance is crucial. With so many cars on the road these days, in case of a serious accident injuring someone, the compensation can reach millions, so it's highly recommended to get a high coverage amount. There's also theft insurance, depending on how safe your parking area is—it's necessary in places with high car theft rates. Passenger liability insurance protects the passengers in your car, which is very useful when driving with family. I remember when I first bought insurance, the agent recommended adding a no-deductible clause, so you don't have to pay the deductible when making a claim, which saves a lot of hassle. In short, there are mandatory and optional types, so choose based on your driving habits.
