What types of car insurance should I generally purchase?
1 Answers
Generally, it is advisable to purchase compulsory traffic insurance, third-party liability insurance, passenger liability insurance, and no-deductible insurance. Car insurance mainly includes two types: compulsory traffic insurance and commercial insurance. Compulsory traffic insurance is mandatory by the state. In contrast, commercial car insurance is optional for car owners. Below are the insurances you need to purchase after buying a car: 1. Compulsory traffic insurance: This is a mandatory insurance required by the state. If not purchased, traffic police may impose fines upon inspection. This insurance provides limited compensation, mainly for others, and does not cover your own vehicle. 2. Third-party liability insurance: This is used to compensate for third-party personal injuries or fatalities caused by the car owner. It is essential to purchase this insurance as it provides protection for both yourself and others. 3. Vehicle damage insurance: This compensates for losses to your own vehicle caused by natural disasters and accidents. It is recommended for new drivers. 4. No-deductible insurance: This is an additional insurance that transfers the responsibility the car owner needs to bear to the insurance company, reducing the owner's losses. If you have purchased both vehicle damage insurance and third-party liability insurance, it is also advisable to purchase no-deductible insurance.
