What types of insurance are generally purchased for vehicles?
4 Answers
Vehicles must purchase compulsory traffic insurance, which is mandatory by national regulations. If not purchased, drivers will be fined if caught by traffic police. This insurance provides limited compensation, mainly covering others and not the policyholder's own vehicle. Other types of insurance can be optionally purchased based on the owner's decision. The following types are generally recommended: Third-party liability insurance: In accidents causing injuries, deaths, or direct property damage to individuals other than the driver and passengers, the insurance company will provide compensation as stipulated. If the other party is fully at fault, the insurer may offer full compensation; if the policyholder is fully at fault, the insurer has a 20% deductible. Vehicle damage insurance: This insurance compensates the policyholder's own losses, helping to reduce personal financial burden. No-deductible insurance: This is an additional insurance type. In many accident compensations, insurance companies apply a 5-20% deductible rate. Purchasing no-deductible insurance avoids these deductibles, allowing for full compensation.
When it comes to car insurance, I believe there are several basic types that are essential. Compulsory traffic insurance is mandatory by the state—you can't drive without it, and it needs to be renewed every year. It mainly covers damages to others. I highly recommend third-party liability insurance as well, with a coverage amount preferably over 1 million. If you accidentally hit someone or another car, the financial pressure will be much lighter. Vehicle damage insurance depends on how valuable your car is—new or expensive cars should definitely have it, as the insurer will share the high repair costs. If you park in sketchy areas, theft insurance can protect against car theft. Glass insurance is also practical, making it easier to repair if a rock cracks your windshield. I often add the no-deductible special clause, eliminating any deductible in claims. I think it's not worth skimping on these costs—spending a bit on premiums can save you from big headaches and prevent panic in emergencies. There’s also optional seat insurance to protect passengers, which is great if you often drive family or friends.
When I first learned to drive, experienced drivers told me that compulsory traffic insurance is a legal requirement. Third-party liability insurance covers others' losses, and higher coverage provides peace of mind—otherwise, you might not afford the compensation in case of an accident. For car damage insurance, it depends on the car's age; you can skip it for older cars to save money. Theft insurance isn't a bad idea, especially in cities where parking isn't always safe. Glass insurance is cheap and saves hassle for minor accidents. As a beginner, start simple—don’t waste money on unnecessary coverage. Talk to your insurer to clarify your needs and adjust your policy annually. Safety comes first, but affordability matters too.
For family use with frequent outings involving children, I prioritize comprehensive safety when purchasing car insurance. Compulsory traffic insurance provides basic coverage. High coverage for third-party liability insurance protects against unexpected compensation claims. Vehicle damage insurance safeguards my own car, with repair costs covered by the insurance company. I particularly recommend seat insurance for added protection in case of injuries to family or friends. Occasionally, I add glass insurance or spontaneous combustion insurance, but it's unnecessary to overdo it. Regularly checking the insurance policy ensures safe travels for the whole family—don't skimp on this budget.
