Automobile insurance classification

Motor vehicle insurance is a kind of commercial insurance that is responsible for personal injury or property loss caused by natural disasters or accidents. Auto insurance is a type of property insurance. In the field of property insurance, auto insurance is a young type of insurance.

It is because auto insurance comes into being and develops with the emergence and popularization of cars. At the same time, it is different from the modern motor vehicle insurance, Liability insurance is the primary insurance in the initial stage of automobile insurance, and gradually extends to the loss due to collision and other risks of the body.

Nowadays, a widespread type of insurance is carried out mainly for motor vehicles such as cars, trams, and motorcycles. Car insurance can be divided into commercial insurance and compulsory insurance. Commercial insurance includes two parts: the main insurance and additional insurance.

Compulsory insurance

Compulsory traffic insurance is compulsory liability insurance that the insurance company compensates for the casualties and property losses of the victims [excluding the vehicle’s personnel and the insured] caused by the road traffic accident of the insured motor vehicle within the limit of liability.

Vehicle loss insurance

Vehicle loss insurance refers to that the insurer shall make compensation according to the provisions of the insurance contract for the loss of the insured vehicle caused by the natural disaster (excluding earthquake) or accident within the scope of insurance liability. This is the opposite of the third. If you value your car, you have to buy it.

Third-party liability insurance

It is responsible for the compensation liability for the personal injury or death of others, and the direct damage of property caused by the accident of the insured vehicle in use. Collision or collision is the most terrible thing when driving. So, you need to pay a lot of money to compensate others for yourself. Because the compensation of compulsory insurance for the medical expenses and property losses of the third part is relatively low, the third-party liability insurance can be considered as a supplement when purchasing compulsory insurance.

Onboard liability insurance

To be responsible for the compensation liability for the personal injury and death of the personnel on the vehicle and the direct damage to the goods on the vehicle caused by the accident of the insured vehicle. Among them, the liability for personal injury and death of the people on the vehicle is accident insurance for drivers and passengers.