What Types of Car Insurance Are There?
2 Answers
Car insurance generally includes compulsory traffic insurance and commercial insurance. Commercial insurance consists of basic insurance and additional insurance. More detailed information is as follows: 1. Compulsory traffic insurance, also known as compulsory motor vehicle traffic accident liability insurance, is a mandatory insurance required by law. It is a compulsory liability insurance where the insurance company compensates for personal injuries, deaths, and property losses (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limits. 2. Basic insurance is divided into vehicle damage insurance, third-party liability insurance, full vehicle theft insurance (theft insurance), and vehicle occupant liability insurance (driver liability insurance and passenger liability insurance). 3. Additional insurance includes vehicle liability insurance, cargo drop liability insurance, windshield breakage insurance, vehicle downtime loss insurance, spontaneous combustion loss insurance, newly added equipment loss insurance, and no-deductible special insurance.
Just renewed the insurance for my beloved car and found there are quite a few optional types. Compulsory traffic insurance is mandatory by law, equivalent to basic medical insurance for vehicles. Among commercial insurance, I mainly consider these: vehicle damage insurance covers my own repair costs, especially useful for new drivers prone to scratches; third-party liability insurance is particularly important, providing a safety net in case of accidentally hitting a luxury car or pedestrian; passenger liability insurance protects friends and family in the car. Nowadays, I also add medical expenses beyond medical insurance liability insurance, worried about incomplete reimbursement of accident medical fees. Spontaneous combustion insurance and water-related damage insurance depend on the car's condition—older cars or those frequently driving through waterlogged areas should add them. Scratch insurance is recommended for new cars, allowing claims if the car gets scratched on the roadside. Buying insurance is about peace of mind, but price differences between packages can be over a thousand, so it's essential to carefully compare coverage.
