What Types of Insurance Are Included in Comprehensive Vehicle Insurance?
2 Answers
Comprehensive vehicle insurance includes compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, and passenger liability insurance. Below are detailed explanations of these vehicle insurance types: Compulsory Traffic Insurance: The coverage of compulsory traffic insurance includes death and disability compensation, medical expenses, and property damage costs. Since it is divided into liable and non-liable scenarios, the maximum compensation amounts vary under different circumstances. However, it's important to note that compulsory traffic insurance covers the "third party," meaning the vehicle owner, their vehicle, and passengers are not included in the coverage. Vehicle Damage Insurance: After the vehicle insurance reform, the coverage of additional insurances such as scratch insurance, glass insurance, theft insurance, and water damage insurance has been incorporated into vehicle damage insurance. Third-Party Liability Insurance: If the policyholder or an authorized driver causes a traffic accident while using the insured vehicle, resulting in bodily injury, death, or property damage to a third party, the financial losses legally borne by the policyholder can be compensated by the insurance company. From the definition of third-party liability insurance, it's clear that this insurance compensates the "third party" and not the policyholder themselves. Passenger Liability Insurance: In the event of a traffic accident involving the insured vehicle that causes bodily injury or death to passengers, this insurance covers medical expenses, loss of income, funeral expenses, etc., but excludes compensation for emotional distress. Additionally, accidents occurring while boarding or alighting the vehicle or during vehicle repairs, as well as injuries resulting from illegal/unauthorized rides, intentional harm, or natural disasters, are not covered.
After driving for over a decade, I've figured out that 'full coverage' is actually a colloquial term—it doesn't include all types of insurance. Typically, it consists of several core components: compulsory traffic insurance is the foundation, mandated by the government to cover compensation for injuries or deaths in traffic accidents. Under commercial insurance, vehicle damage insurance covers repairs to your own car after an accident; third-party liability insurance compensates for others' losses—it's advisable to opt for higher coverage to avoid insufficient compensation; theft insurance protects against car theft, though it might be unnecessary if you live in a secure urban residential area; passenger liability insurance covers injuries to people in the car. There are also optional add-ons like standalone glass breakage insurance and spontaneous combustion loss insurance, which should be chosen based on your driving environment. My advice? Don’t fall for sales pitches—select coverage based on your typical routes, and if you're on a tight budget, skip the less common policies.
