Which types of car insurance are generally available for purchase?
3 Answers
Car insurance is mainly divided into compulsory traffic insurance and commercial auto insurance. Compulsory traffic insurance is a mandatory coverage required by the state, while commercial auto insurance can be purchased voluntarily based on the actual needs of the vehicle owner. The following four types of car insurance are essential for purchase: 1. Compulsory Traffic Insurance: Compulsory traffic insurance is a mandatory insurance required by the state. It provides compensation by the insurance company for bodily injury, death, or property damage caused to victims in road traffic accidents involving the insured vehicle, within the liability limits. However, it does not cover the vehicle's occupants or the insured. Car owners must purchase compulsory traffic insurance; driving without it is prohibited. If caught by traffic police without this insurance, the vehicle will be impounded, a double premium penalty will be imposed, and immediate purchase is required to resume driving. Additionally, new vehicles cannot be registered without compulsory traffic insurance. 2. Vehicle Damage Insurance: Vehicle damage insurance covers damage to the insured vehicle caused by an accident while being driven by the insured or an authorized driver, with compensation provided by the insurance company within reasonable limits. It's important to note that this coverage does not include theft, robbery, standalone glass breakage, or standalone wheel damage of the motor vehicle. Therefore, not all vehicle damages will be compensated by the insurance company after an accident. 3. Third-Party Liability Insurance: Third-party liability insurance supplements compulsory traffic insurance, primarily covering bodily injury, death, and property damage to third parties in traffic accidents. Third parties refer to anything other than the insured vehicle, including other motor vehicles, non-motor vehicles, people, animals, and road traffic facilities. 4. No-Deductible Insurance: In the event of a traffic accident, unless the owner is not at fault, most car insurance policies have a certain deductible rate. The greater the liability, the higher the deductible rate, requiring the owner to pay out of pocket for these costs. However, with no-deductible insurance, these costs can be transferred to the insurance company, which will provide full compensation. Therefore, no-deductible insurance is a highly practical coverage and is strongly recommended for purchase. Apart from the four essential types of car insurance mentioned above, other coverages can be purchased as needed, such as water damage insurance for owners living in rainy and flood-prone areas, or spontaneous loss insurance for vehicles older than five years.
I think when it comes to buying regular car insurance, it mainly depends on your driving habits and risk factors. Firstly, third-party liability insurance is a must-have as it's legally required and covers compensation if you hit someone else. Next, vehicle damage insurance is quite practical, protecting your own car against losses from accidents or natural disasters, especially for new cars or financed vehicles. Then there's the no-deductible insurance, which can save you from paying a portion of the deductible and is suitable for those with a sufficient budget. Additionally, glass breakage insurance is affordable but practical, covering repairs for incidents like a stone shattering your windshield on the highway. Finally, if you park in a high-risk area, theft insurance is worth considering. A friend of mine suffered heavy losses after their car was stolen because they only had basic coverage, so I recommend considering comprehensive options.
As a veteran driver with over a decade of experience, I sincerely recommend several core insurance types. Third-party liability insurance is an essential foundation, protecting against injuries and property damage caused to third parties in accidents. Vehicle damage insurance is also indispensable, covering repair costs for your own car, especially for used or high-value models. Additional coverage like non-deductible insurance reduces your share of the costs—spending a little extra to prevent major losses is wise. If you frequently drive in urban or rural areas, glass insurance and spontaneous combustion insurance (for older cars) are worth adding. Many overlook standalone tire damage insurance, but it’s useful if you often drive on rough roads. Remember to compare quotes from multiple insurers based on your budget, avoid blindly following trends, and make rational choices to save money and stay worry-free.
