What Types of Insurance Should You Buy for Your Car?
2 Answers
Generally required car insurance types: 1. Compulsory Traffic Insurance: A legally mandatory insurance that must be purchased; otherwise, the car cannot be legally driven on the road. 2. Vehicle Damage Insurance: Provides compensation for losses caused by external factors to the insured vehicle, typically not exceeding 30% of the liability limit. 3. Third-Party Liability Insurance: In the event of a major accident, the compensation from compulsory traffic insurance may be insufficient. Third-party liability insurance supplements this, with coverage options ranging from 50,000 to 2 million. 4. Passenger Liability Insurance: Divided into driver's seat and passenger seat coverage, it compensates for injuries or deaths of passengers inside the car caused by accidents, with coverage options ranging from 10,000 to 50,000. 5. No-Deductible Insurance: Insurance companies assess the deductible rate (5% to 20%) based on the insured vehicle's liability share in an accident. Purchasing this insurance waives the deductible responsibility.
I've been driving for over twenty years, so insurance is something I take very seriously. First, there's compulsory traffic insurance, which is mandatory by the state and must be purchased every year—otherwise, the car can't be driven legally. For commercial insurance, I highly recommend third-party liability coverage. With so many luxury cars and pedestrians on the road these days, a coverage limit of at least 2 million is advisable to avoid financial ruin in case of an accident. Vehicle damage insurance is also practical, covering minor scrapes and dents—like that time my tires got stuck in a pothole during heavy rain, and the repair costs were fully covered. Passenger liability insurance for both the driver and passengers is a must, ensuring peace of mind when family members are in the car. Don’t skimp on the no-deductible coverage; it ensures the insurer covers the full cost. Glass and water damage insurance depend on your region—essential in rainy southern areas, but northerners dealing with snow might save here. Theft insurance isn’t as crucial nowadays with so many street cameras. Tailor your insurance package based on the car’s age: comprehensive for new cars, streamlined for older ones.
