What Types of Car Insurance Should You Buy?

[VonColeman]

Car insurance mainly includes two types: compulsory traffic insurance and commercial insurance. Compulsory traffic insurance is mandatory by the state, while commercial insurance is optional for car owners. Commercial insurance includes liability insurance, third-party insurance, water damage insurance, and theft insurance. Introduction to Compulsory Traffic Insurance: The full name of compulsory traffic insurance is 'Compulsory Traffic Accident Liability Insurance for Motor Vehicles.' It is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, or property losses (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limits. Necessity of Compulsory Traffic Insurance: Compulsory traffic insurance ensures that victims of motor vehicle road traffic accidents receive compensation and promotes road traffic safety. It provides timely and basic protection for victims of traffic accidents.