What Types of Car Insurance Are There?
3 Answers
Car insurance can be specifically divided into commercial insurance and compulsory traffic insurance. Commercial insurance includes: vehicle damage insurance, third-party liability insurance, passenger liability insurance, full vehicle theft insurance, glass breakage insurance, vehicle suspension loss insurance, spontaneous combustion loss insurance, additional equipment loss insurance, engine water ingress insurance, no-fault liability insurance, substitute vehicle expense insurance, body scratch loss insurance, special clauses for non-deductible rates, cargo liability insurance on board, and many other types of insurance. Motor vehicle damage insurance covers the insured vehicle suffering from natural disasters or accidents within the scope of insurance, resulting in the loss of the insured vehicle itself, and the insurer compensates according to the provisions of the insurance contract.
When I bought my first car, I spent a lot of time researching insurance types. For new drivers, auto insurance mainly consists of several major parts: compulsory traffic insurance is government-mandated and must be purchased to cover the losses of the other party's people and vehicles, typically costing a few hundred yuan per year. Among commercial insurances, the most practical is third-party liability insurance, with coverage ranging from hundreds of thousands to millions, handling compensation when you hit someone else; vehicle damage insurance covers the repair costs of your own vehicle, including scratches or accidents; passenger liability insurance covers injuries to yourself and passengers, inexpensive but useful in critical moments. There are also additional insurances, such as waterlogging insurance to prevent engine damage during the rainy season, and theft insurance which is necessary for new cars. From my experience, I recommend buying a combination of third-party liability and vehicle damage insurance, which offers reasonable premiums. While comprehensive insurance is expensive, it provides full coverage. When choosing an insurance company, check online reviews to find one with good service. Don't forget to compare prices before renewing your policy each year, as it can save a lot of money. Ultimately, ensuring driving safety is the key.
As a long-time road trip enthusiast, I believe car insurance selection should prioritize practicality and regional risks. The most essential coverage is third-party liability insurance, with a coverage amount I opt for around 1 million, ensuring compensation for third-party vehicle damages in case of accidents. Comprehensive insurance is absolutely indispensable, as repairing your own car can be prohibitively expensive, especially after mountain or highway driving. Passenger liability insurance is crucial for family travel safety. For additional coverage, I include zero deductible insurance to avoid out-of-pocket expenses for minor incidents. During rainy seasons, water damage insurance is essential to prevent flood-related losses. Older vehicles should consider spontaneous combustion insurance, while new cars might need theft protection. Premiums vary based on vehicle age and location—flood-prone cities require water damage coverage, while mountainous areas benefit from windshield protection. I regularly compare insurance providers, choosing reputable combinations that offer peace of mind and savings. The core goal is to drive worry-free, without financial stress when the unexpected occurs.
