What Types of Insurance Should You Buy for a Sedan?
1 Answers
There are four essential types of car insurance: compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, and no-deductible insurance. Other types of car insurance can be purchased selectively based on actual needs. 1. Compulsory Traffic Insurance: This insurance is mandatory by law. Without it, you cannot drive on the road. If caught by traffic police without this insurance, your vehicle will be impounded, you will be fined double the premium, and you must purchase it immediately to resume driving. 2. Vehicle Damage Insurance: In the event of a traffic accident, this insurance covers the loss or damage to your own vehicle. After compulsory traffic insurance, vehicle damage insurance is arguably the most important car insurance. Its price, coverage amount, and scope of protection should be thoroughly understood. 3. Third-Party Liability Insurance: Often abbreviated as "third-party insurance" or "TPL," it primarily covers bodily injury and property damage to third parties in traffic accidents. 4. No-Deductible Insurance: This insurance transfers the cost that the policyholder would otherwise bear to the insurance company. Most car insurance policies have a deductible rate (a portion of the cost the policyholder must pay in the event of an accident). For example, vehicle damage insurance has a 15% deductible rate (in cases where the policyholder is primarily at fault), while theft insurance and third-party liability insurance can have a deductible rate of up to 20%.
