Which car insurances are generally purchased?
1 Answers
Apart from compulsory traffic insurance which is mandatory, other car insurances are optional. Here are the specific introductions of car insurances: 1. Compulsory Traffic Insurance: This is a legally required insurance that every car owner must purchase. It provides the most basic insurance claims when traffic accidents occur. In the event of an accident, compulsory traffic insurance can help car owners cover difficult-to-pay economic compensations. The compensation amount is determined based on the car owner's liability proportion in the accident and whether it causes casualties. 2. Vehicle Damage Insurance: This insurance covers damages to the insured vehicle caused by accidents when driven by the insured or an authorized driver. The insurance company will provide reasonable compensation. The premium for vehicle damage insurance is closely related to the vehicle's purchase price and the number of seats. 3. Third-party Liability Insurance: This insurance covers compensation for bodily injuries or direct property damages to third parties (excluding the driver and passengers of the insured vehicle) caused in an accident. The insurance company will compensate according to regulations.