What types of vehicle insurance are available?
2 Answers
Vehicle insurance mainly includes the following types: compulsory traffic insurance; vehicle damage insurance; third-party liability insurance; and no-deductible insurance. Additionally, there are other types of vehicle insurance such as comprehensive theft insurance, passenger liability insurance, scratch insurance, glass insurance, vehicle spontaneous combustion insurance, and water-related damage insurance. Below is an introduction to the types of vehicle insurance: 1. Compulsory traffic insurance: Primarily covers the insured vehicle in case of an accident causing personal injury, death, or property damage to victims, with the insurance company providing compensation within the liability limits, excluding the insured and passengers in the vehicle. 2. Vehicle damage insurance: If the insured vehicle is damaged in an insured accident, the insurance company will compensate according to the contract terms. 3. Third-party liability insurance: If the insured vehicle causes an accident resulting in personal injury, death, or property damage to a third party, the insurance company will compensate based on the contract terms. 4. No-deductible insurance: This is an additional insurance type that requires the purchase of a 'main insurance' policy. It ensures that, according to special agreements, after an accident, the insurance company will cover the deductible portion calculated based on the main insurance policy's terms.
There are many types of car insurance, and when buying a car, I start with the essential ones. Compulsory traffic insurance is mandatory by the state; you can't drive without it, and it basically covers others' medical expenses and property damage. I suggest setting the third-party liability coverage higher, such as 500,000 to 1 million, so you won't have to pay out of pocket if you hit another car. Vehicle damage insurance is optional but necessary for valuable cars to cover repair costs if your car is damaged. Additionally, passenger liability insurance protects the driver and passengers, and it's affordable and practical. Theft insurance depends on the risk level of your residence—urban areas with more thieves are best covered. Scratch and glass breakage insurance are suitable for new cars, while water damage insurance is worth considering if you often drive on rough roads. The money-saving tip is to compare prices, choose companies with fast claims processing, and follow recommendations from experienced car owners.
