What Types of Conventional Car Insurance Should You Buy?
2 Answers
Conventional car insurance should include the following types: 1. Compulsory Traffic Accident Liability Insurance (CTALI): The full name is "Compulsory Traffic Accident Liability Insurance for Motor Vehicles," meaning this insurance is mandatory as required by national regulations. CTALI is commonly referred to as "basic coverage" in the industry because it only provides limited compensation, serving as a fundamental safeguard. Importantly, it covers losses caused to third parties, not the policyholder themselves. 2. Commercial Insurance: Commercial auto insurance offers a variety of coverage options, including vehicle damage insurance, third-party liability insurance, passenger liability insurance, and comprehensive theft insurance, which can be purchased based on individual preferences and needs. 3. Passenger Liability Insurance: This insurance primarily compensates for injuries or fatalities of passengers in the vehicle caused by traffic accidents. 4. Engine Water Damage Insurance: This insurance covers engine damage caused by flooding, with typical claim scenarios including engine destruction due to starting the vehicle in water, engine damage from driving through water, and accidental submersion of the vehicle in a river while driving.
When I first bought my car last year, I also had a headache about insurance. After researching for a long time, I finally understood: compulsory traffic insurance is a must-buy, and third-party liability insurance required by law can't be avoided either. It's best to add vehicle damage insurance in case of scratches—it covers repair costs. For third-party insurance, I recommend going directly for coverage above 2 million, as there are too many luxury cars on the road these days. Don't skimp on passenger liability insurance—it provides security when traveling with family. The no-deductible insurance is also very practical, saving you from paying out of pocket during claims. For new cars, theft insurance is worth considering, but for older cars, it's unnecessary. If you live in the south with heavy rainy seasons, adding water damage insurance is also a good idea. Always compare insurance options and choose a reliable company with fast claims processing—it’s more important than saving a few hundred bucks.
