What types of insurance are available for car purchases?
2 Answers
When purchasing a car, the following types of insurance are available: 1. Compulsory Traffic Accident Liability Insurance: This is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, or property losses caused to victims (excluding the vehicle's occupants and the insured) in road traffic accidents involving the insured vehicle, within the liability limits. 2. Vehicle Damage Insurance: This insurance covers losses to the insured vehicle caused by natural disasters (excluding earthquakes) or accidents within the scope of insurance liability, with compensation provided by the insurer according to the terms of the insurance contract. 3. Third-party Liability Insurance: This is a compulsory insurance required for annual vehicle inspection. It covers direct property losses and personal injuries to third parties caused by accidents involving the insured vehicle when driven by a qualified driver.
There are quite a few types of car insurance, and I did some research when I first bought a car. They are mainly divided into two categories: compulsory traffic insurance is legally mandatory, covering compensation for injuries or damages to others in case of an accident; commercial insurance is optional, including third-party liability insurance for third-party property or personal losses, vehicle damage insurance for your own car's repair costs, and no-deductible insurance to make the insurer cover all costs without your contribution. There's also theft insurance to protect against vehicle theft, scratch insurance for minor scrapes, water damage insurance for engine protection against flooding, and spontaneous combustion insurance for electrical circuit aging issues. Passenger liability insurance ensures passenger safety. Beginners are advised to at least get third-party liability insurance plus vehicle damage insurance, as the premiums are reasonable and cover major risks. Before driving, compare policies from several companies to choose the most suitable plan for yourself.
