What Types of Insurance Are Included in Comprehensive Auto Insurance?
3 Answers
Comprehensive auto insurance mainly includes compulsory traffic liability insurance, vehicle damage insurance, third-party liability insurance, whole vehicle theft insurance, passenger liability insurance, standalone glass breakage insurance, spontaneous combustion loss insurance, and no-deductible insurance. Except for the compulsory traffic liability insurance, the rest fall under the category of commercial insurance. The full name of compulsory traffic liability insurance is "Compulsory Traffic Accident Liability Insurance for Motor Vehicles," which is the first mandatory insurance system implemented by national law in China. For vehicles that fail to purchase compulsory traffic liability insurance as required, traffic management authorities have the right to impound the vehicle and impose a fine of twice the amount of the insurance premium that should be paid. Vehicle damage insurance refers to the insurer compensating for the loss of the insured vehicle caused by natural disasters (excluding earthquakes) or accidents within the scope of insurance liability, according to the provisions of the insurance contract. Commercial third-party liability insurance means that if the insured vehicle causes personal injury or direct property damage to people outside the vehicle due to the owner's fault in an accident, the insurer will compensate according to the provisions of the insurance contract. Whole vehicle theft insurance is responsible for compensating the loss of the insured vehicle due to theft of the entire vehicle. Passenger liability insurance means that if an accident causes injury to passengers in the insured vehicle, the insurance company will be responsible for compensation. Standalone glass breakage insurance refers to compensation by the insurance company for glass breakage when the vehicle's glass alone is broken or shattered during parking or use, without damage to other parts of the vehicle. Spontaneous combustion loss insurance covers the loss of the insured vehicle caused by combustion due to faults in the circuit, wiring, fuel supply system, or spontaneous combustion of the cargo being transported. No-deductible insurance means that if the insured opts for no-deductible coverage for the corresponding insurance type, they can receive full compensation. For example, if the vehicle suffers damage or causes a third-party liability insurance claim, the insurance company will compensate for the deductible amount that the insured would otherwise have to bear.
When I first bought my car, the insurance company recommended a comprehensive insurance package that mainly included compulsory traffic insurance and several types of commercial insurance. Compulsory traffic insurance is mandatory by the state and covers compensation for others' losses. For the commercial insurance part, I opted for vehicle damage insurance to cover repairs for my own car in case of collisions or natural disasters, third-party liability insurance to cover compensation for injuries to others or damage to property, and full vehicle theft insurance to protect against car theft, as well as passenger liability insurance to safeguard passengers. Additionally, I chose glass insurance and no-deductible insurance to better handle situations like glass breakage or full compensation in case of accidents. Since I drove mostly in the city, I set a higher coverage limit for third-party liability insurance to avoid significant expenses in case of accidents. The claims process was smooth, and I recommend that new drivers compare premiums more, as some companies offer maintenance discounts.
Having driven for twenty years, I always prioritize comprehensive coverage when choosing full insurance. It must include compulsory traffic insurance as the baseline coverage. Among commercial insurance, vehicle damage insurance is essential, as it directly covers repairs for scratches or water damage. Third-party liability coverage should be high, especially in cities where traffic congestion increases accident risks. Theft insurance and passenger liability insurance protect both myself and my family. Spontaneous combustion insurance is beneficial for older cars, preventing losses from electrical failures that may cause fires. No-deductible insurance ensures complete compensation by eliminating out-of-pocket expenses. In daily use, glass insurance is practical for handling minor damages. Overall, the combination of insurance types should match personal driving habits, and it's unwise to skimp on critical coverage to save money.
