Which types of car insurance are generally purchased?
2 Answers
Compulsory traffic insurance (CTI) is mandatory for all car owners, while other commercial insurances can be purchased as needed. For novice drivers, it is recommended to purchase vehicle damage insurance, third-party liability insurance, and passenger liability insurance to ensure financial compensation in case of accidents. For experienced drivers, only CTI, third-party liability insurance, and no-deductible insurance are necessary. CTI is a compulsory insurance, and generally, driving without it is not allowed. Vehicle damage insurance can significantly reduce car losses. No-deductible insurance means that all losses within the coverage scope will be fully covered by the insurance company. Third-party liability insurance refers to the financial responsibility that the insured or their permitted driver must bear for causing bodily injury, death, or direct property damage to a third party during the use of the insured vehicle, which the insurance company will compensate. Passenger liability insurance covers all passengers in the insured vehicle (excluding the driver) for personal injury losses in the event of a traffic accident, with the insurance company responsible for compensation. No-deductible insurance means that all losses within the coverage scope will be fully covered by the insurance company.
When it comes to car insurance, I've been driving for over a decade and usually opt for a few standard coverage types. First is compulsory traffic insurance, which is mandatory and covers basic liability. Then there's vehicle damage insurance to protect my own car from damages like scratches or accident repairs. Third-party liability insurance is particularly crucial because accidents like rear-end collisions or minor bumps are unavoidable, and this coverage compensates for the other party's personal and property losses. I also recommend adding passenger liability insurance for peace of mind when driving with family or friends. Additionally, there's the no-deductible insurance, which ensures full compensation without out-of-pocket expenses. Altogether, these five or six policies cover most risks, especially when driving in big cities with complex traffic. Every year at renewal, I review and adjust them slightly based on the car's age—for instance, adding theft insurance for new cars and paying attention to maintenance-related costs for older ones.
