What Types of Insurance Are Included in Full Coverage Auto Insurance?
1 Answers
Full coverage auto insurance includes compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, and passenger liability insurance. Below are detailed explanations of these 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 at-fault and no-fault scenarios, the maximum compensation amounts vary under different circumstances. However, it is important to note that compulsory traffic insurance covers "third parties," meaning the vehicle owner, their own vehicle, and passengers are not included in the coverage. Vehicle Damage Insurance: After the auto 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: When 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 economic losses legally borne by the policyholder can be compensated by the insurance company. From the definition of third-party liability insurance, it is clear that this insurance compensates "third parties" and not the policyholder themselves. Passenger Liability Insurance: If the insured vehicle is involved in a traffic accident causing bodily injury or death to passengers, the insurance covers medical expenses, lost wages, funeral expenses, etc., but does not include compensation for mental distress. Additionally, injuries or deaths occurring while passengers are boarding, alighting, or during vehicle repairs are not covered. Furthermore, damages resulting from illegal/unauthorized rides, intentional harm, or natural disasters are also excluded from coverage.
