What types of insurance should a car generally purchase?
1 Answers
Car insurance types that need to be purchased are as follows: 1. Compulsory Traffic Accident Liability Insurance: Specifically, compulsory traffic accident liability insurance is a mandatory coverage required by the state, and vehicles cannot legally operate on roads without it. 2. Third-Party Liability Insurance: Third-party liability insurance, commonly referred to as "third-party coverage," provides economic compensation from the vehicle owner to a third party for personal injury or property damage caused by a car accident. 3. Vehicle Damage Insurance: This covers the portion exceeding the compulsory insurance limit and is reimbursed by the insurance company. It is essential to purchase this coverage, and the insured amount should not be too low. Generally, it is recommended to have a coverage of at least 300,000 yuan. Vehicle damage insurance is used to cover the loss of your own car. 4. No-Deductible Special Insurance: If an accident occurs between two vehicles and the other party does not have insurance, making it impossible to obtain legal support for compensation from them, having your own vehicle insured with vehicle damage insurance allows you to receive compensation from the insurance company. No-deductible special insurance specifically covers the deductible portion in auto insurance. Auto insurance clauses typically set a 20% deductible rate. If the vehicle is totaled in an accident and cannot be repaired, purchasing no-deductible special insurance ensures the insurance company fully compensates for the vehicle's loss. Without this coverage, the insurance company only compensates 80% of the vehicle's value.
