Which Types of Car Insurance Should You Buy in 2021?
1 Answers
Vehicle insurance is divided into two major categories: compulsory insurance and commercial insurance. There are four types of insurance that must be purchased (compulsory insurance, third-party liability insurance, vehicle damage insurance, and no-deductible insurance). The specific details are as follows: 1. Compulsory Insurance, also known as Traffic Accident Liability Compulsory Insurance: This is a type of insurance mandated by the state, and vehicles cannot be driven on the road without it. New cars cannot be registered without compulsory insurance. When a vehicle undergoes an annual inspection, a copy of the compulsory insurance policy must also be submitted. In the event of an accident, compulsory insurance is required to compensate third-party victims. According to regulations, compulsory insurance has corresponding compensation limits: 110,000 yuan for death or disability, 10,000 yuan for medical expenses, and 2,000 yuan for property damage. These are the maximum compensation limits for compulsory insurance. 2. Third-Party Liability Insurance: The coverage amount of third-party liability insurance varies depending on the insured amount. It is recommended to purchase at least 1 million or 2 million yuan in coverage to ensure that no additional costs are incurred when the vehicle is fully responsible for a traffic accident. 3. Vehicle Damage Insurance: This insurance protects the vehicle itself. Whether it is a two-party or single-party traffic accident, the insurance company will provide free repairs to the responsible party within the specified coverage limit. 4. No-Deductible Insurance: After purchasing vehicle damage insurance and third-party liability insurance, the insurance company will not compensate 100% of the loss amount in the event of a claim. However, if no-deductible insurance is purchased, 100% of the actual repair and loss costs will be compensated.
