What types of insurance are included in commercial auto insurance?
2 Answers
Commercial auto insurance includes compulsory traffic insurance, third-party liability insurance, and theft insurance, among others. Here is the relevant information: 1. Compulsory Traffic Insurance: Compulsory traffic insurance is a legally mandated insurance type and a necessary protection for both the car owner and the vehicle. In the event of an accident, it can significantly reduce the financial burden on the car owner and resolve disputes. Most importantly, without this insurance, the vehicle cannot be registered, transferred, or undergo annual inspections. If caught, the vehicle may be impounded, and the owner may face a penalty of double the insurance premium. If the driving record is sufficiently good, the owner may enjoy more favorable premiums. 2. Third-Party Liability Insurance: This refers to the economic liability that the insured or their permitted driver must bear in accordance with the law when an accident occurs during the use of the insured vehicle, resulting in personal injury, death, or direct property damage to a third party. The insurance company is responsible for compensation. 3. Theft Insurance: This refers to compensation by the insurer within the insurance amount when the insured vehicle is stolen, robbed, or hijacked, and after being filed and investigated by the county-level or higher public security criminal investigation department for a certain period (mostly three months, with PICC's clause being 60 days) without recovery. The compensation ratio is assessed based on the vehicle's years of use and maintenance condition.
As a seasoned driver with over a decade of experience, I ponder over commercial insurance every year when renewing. The most essential is the vehicle damage insurance, which covers the repair costs of your own car—like after a rear-end collision, all repairs rely on it. I recommend getting third-party liability insurance with at least 2 million coverage, given the abundance of luxury cars nowadays; a minor scrape could be financially devastating. Don’t skimp on passenger liability insurance, especially if you often carry family members—it provides crucial protection in case of an accident. I also always opt for the no-deductible insurance; otherwise, the insurer always makes me pay a portion out of pocket. As for theft insurance, glass insurance, and scratch insurance, it depends on personal circumstances—I don’t buy them since my car is parked in an underground garage. Remember, commercial insurance is flexible; don’t let salespeople trick you into buying unnecessary coverage.
