Why Is Insurance for a New Car So Expensive?

[MacNolan]

Because the insured value of a new car is high. The insured value refers to the value of the subject matter of insurance that serves as the basis for determining the insurance amount when the policyholder and the insurer enter into an insurance contract. It is the monetary estimation of the policyholder's insurable interest in the subject matter of insurance. Additionally, new cars do not come with price discounts. Here is some extended information: 1. Types of auto insurance: In addition to the mandatory compulsory traffic insurance, there is also commercial insurance. Commercial insurance generally includes vehicle damage insurance, third-party liability insurance, passenger seat insurance, and no-deductible insurance, among others. 2. New cars require more coverage: New cars typically need to purchase more insurance because they are more prone to minor collisions, and new drivers should consider vehicle damage insurance. Vehicle damage insurance is a type of commercial auto insurance where the insurance company compensates within reasonable limits. It covers damage to the insured vehicle caused by an insurance accident while being driven by the insured or an authorized driver.