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Many of the drivers have headaches every time they get to the insurance policy, the insurance company's telephones and text messages continue, and the clerks will recommend you a long list of risky species, wrapped in a “all-risk package”, as if there was less to buy, and they would have to bear huge losses. Many of the drivers are afraid to take responsibility for the accident, so they collect it all and spend thousands of dollars a year on insurance, which most of the risk species do not use at all and spend for nothing。
I have a friend of the traffic police who has been working on the front line for many years, who normally handles all kinds of traffic accidents, and who has seen too many drivers do not cover them because they have an unreasonable combination of risk and damage, or because they spend so much on insurance each year. He told me that in private cars, two types of insurance were needed to cover the core risk, and that many of the remaining additional insurance items were income-generating projects for insurance companies, and that ordinary drivers did not have to pay for them. Of course, it does not mean that all additional insurance is useless, but the vast majority of day-to-day domestic cars do not have to pay for a lot of extra security. Today, let's start with the idea of a real insurance policy, without exaggerating, without making a fuss, so that you can stop being kidnapped by a package in the coming year。
First of all, one basic common sense needs to be distinguished, with vehicle insurance divided into two broad categories, with strong risks and commercial risks. Many people confuse the concept, and business people speak of only two types of buy-in, namely, strong risk insurance and third-party liability insurance, both of which are bottom-line security. The rest of the vehicle losses are judged by the residual value of the vehicle. New vehicles, high-value vehicles, plus older vehicles of long age and low residual value, have the option of not buying them. Many have heard “buy only two” to be applicable in all cases, ignoring the differences between vehicles themselves, which must be explained in advance。
First, the compulsory insurance of motor vehicle accident liability, which is mandatory under national law, there is no choice. Without insurance, vehicles cannot travel on the road, annual inspections cannot pass, roads are traced, vehicles are punished and suspended, and premiums are paid。
The risk was paid only for the loss of the other party in the accident, with injuries to his own vehicle, damage to his own vehicle and no compensation for the risk. Its compensation is fixed: death and disability compensation is limited to 180,000 yuan, medical expenses are limited to 18,000 yuan and property losses are limited to 2,000 yuan. This amount is barely enough for more than a decade, and it is far from sufficient in the event of a serious human injury or a collision with a luxury vehicle. For example, if the road accidentally hits pedestrians, the other side is hospitalized with serious injuries and, in the aftermath, disability compensation, the limit of $100,000 can easily be broken; if the crashing, crashing, repairing, hundreds of thousands of dollars, and paying up to $2,000 in excess of all costs, the owner of the vehicle has to pay his own pocket。
The premium is a floating mechanism, with up to $950 in the first year for six cars, and a downward adjustment of $665 per year without interruption; in turn, an increase in the number of exposures increases the next year. It is the minimum threshold for entry and covers only minor accidents, and the risk of major accidents is covered by third-party liability。
The second core category, third-party liability insurance, is known daily as tri-risk insurance. It is a powerful addition to the risk of exposure, and the third party in the same event, the other party, was injured, died, the other party's vehicles, property were damaged, and the third party bore the risk of being beyond the risk of exposure。
The traffic police friends have repeatedly warned that the three insurance premiums must not be cheaply selected. In previous years, many car owners had chosen a $1 million guarantee, which was now increasing in the cities, the standard for personal damages was rising every year and 1 million had not been covered by major accidents. In the case of common home-based scooters, it is recommended that 3 million guarantees be selected directly, with a sufficient budget, frequent runaways and high-speed owners, and 5 million more secure. Many drivers are concerned about the high price of the premium, and in fact, the gap between $2 million and 3 million is usually only $1,200 a year, at a very small cost, to isolate the risk of large compensation from a high value for money。
Here, incidentally, there is a key additional risk, liability for out-of-service medical costs. It is not part of the primary risk, and the premium is set at dozens of dollars a year, with the three-person insurance policy. Traffic injuries are hospitalized, many imported medicines, self-serving materials are not included in the health insurance reimbursement list, and these costs could easily result in a shortfall of tens of thousands or even hundreds of thousands. Dozens of dollars can close this loophole, just buy a high three-person risk, take it with you, and block it at a small cost. The traffic police have seen a number of cases in which the owner of the car has bought 3 million dollars without liability for medical care, the injured have to pay 100,000 for their own medical treatment, the insurance company has refused to pay compensation, and the owner has to pay for it. The risk is extremely low and does not belong to the two main types of risk that must be imposed, but is highly recommended。
After talking about the two core risk categories, we're talking about the most vehement vehicle loss. Following the comprehensive vehicle insurance reform in 2020, a one-time package of vehicle loss and damage insurance was incorporated into seven previously sold-alone insurance items, including whole-car theft, glass break-up, self-fire risk, engine water risk, open-ended insurance, inability to find a third-party special offer and designated repair plant insurance. Simplely understood, as long as you buy the car loss or loss insurance, these guarantees are fully self-contained and are not bought at any cost; if the sale also sells the glass insurance and the self-burning insurance to you alone, it is a double charge, which is a typical sales package。
The effect of vehicle loss insurance is to compensate for the cost of repairing their own vehicles. If it's bought or not, the core criterion is how much the car is worth now. New vehicles, vehicles up to five years old, vehicle residual values are higher, and in the event of collisions, repairs are expensive, and vehicle loss and loss insurance is recommended. For example, a new one of hundreds of thousands of domestic vehicles, with tens of thousands of repairs after tailing, is under considerable pressure if the vehicle is not insured and the full cost of repair is paid for。
In turn, when vehicles are older than 10 years old, their residual value is low and the vehicle itself is worth only $120,000, such old vehicles can consider giving up their loss or loss. In the event of an accident, the maximum loss is the residual value of the vehicle itself, with hundreds of minor repairs, and once insurance claims are settled, the risk record will lead to an increase in commercial insurance premiums for the second year, with several hundred dollars frequently spent on repairs, and thousands more on insurance premiums for the following year. In case of small bumps, it would be more cost-effective to pay for maintenance, with vehicles in a major accident dying directly and with a manageable ceiling on losses, it would not be necessary to pay more than a thousand premiums per year for vehicle losses。
Many owners are misled by the term “total risk” that all losses are compensable. In fact, the insurance industry does not have an official definition of full insurance, which is called " full insurance " , where the operator packs together a collection of additional risks of little use and sells them to the owner and raises premiums. These types of insurance, the vast majority of which are common, need not be purchased at all。
Number one, the body scratches. This type of insurance is typical of beauty insurance, which is affordable and more limited in compensation. Scratch the car, so that dozens of pieces can be simply processed with paint brushes; the scratches are so badly in need of paint spray that they leave a record of the risk and the premium rises in the second year. Many of the owners bought scratch insurance, settled their claims once, and saved the cost of the spray paints, which was offset by the increased premiums for the previous year. Except in the case of new cars, long-term parking in old and unmonitored areas that are vulnerable to scratching is not considered by ordinary owners。
Second, liability insurance for personnel on board, commonly referred to as seat insurance. Seat insurance is provided for drivers and passengers of the safe cars, which are insured on the basis of the seat, which is low and not cost-effective. In contrast, the cost of driving an accident alone is much higher than the cost of seating risk, with a maximum of $100 a year for each driver and every person travelling. If family members and friends are often carried, accident risk, rather than seat risk, can be considered。
Third, compensation for costs incurred during repairs. The risk is that during the maintenance of the vehicle, the insurance company will pay the subsidized step fee on a daily basis. The premium is not cheap, the compensation threshold is high, and the maintenance time is short. The low probability of a year of domestic vehicle risk, which can be repaired in most cases in a few days, is a very low rate of practicality and is not just needed。
Fourth, the wheel is in separate risk of loss. Compensation is payable only if the tyres are broken separately and there are no collisions. Daily tyre nails, drums, mostly of individual damage, harsh compensation conditions and additional premiums. In the event of damage to tyres associated with a collision during normal driving, the loss of the vehicle is normally compensable and it is of little interest to purchase it alone。
There is also a double holiday limit that is suitable only for those who often drive long distances on holidays and fear of risk; this risk is not subject to additional cost if there are few trips at normal times and cities travel short distances for most of the year。
The system of high-frequency pedals is a common marketing tool used by operators for a few renewals。
The first, tied up, wrapped and sold. The renewal offer directly offers you the full package, does not separate each risk price, and many drivers do not check the details of the policy carefully and buy all the useless species. Upon receipt of the quotations, it is important that the risk name be clearly identified on a case-by-case basis, that the risk items not required be directly selected and that only the items of their choice be retained。
Second, the settlement case creates anxiety. The clerks speak of various accident cases, suggesting that less insurance is available and that the event is bankrupt. We buy insurance, the core purpose of which is to avoid large and unsustainable economic losses, and hundreds of thousands of small repairs are in themselves a risk that we can take on our own and do not have to pay on an annual basis. The underlying logic of insurance is used to hedge against greater risk, rather than relying on insurance for several hundred small scratches。
Third, there is confusion about value added services and insurance guarantees. Many of the offers were accompanied by value-added services such as road rescue, surrogate inspection and car wash, which the operators would say were insurance and were expensive to purchase alone. In fact, formal insurance companies are now covered by commercial insurance, and many rescue services are provided free of charge, without having to pay for them, and without paying more for services such as car washing, trailers, etc。
Fourth, loans for compulsory insurance against car binding. A number of 4s shops offer car loans, which require the owner to buy a full condom in the shop and do not allow the choice of insurance. In this case, the terms of the loan contract can be seen to confirm the existence of compulsory insurance agreements, under which consumers cannot be forced to purchase surplus commercial insurance, and are able to defend their rights and interests by imposing bindings。
In the next instance, two insurance schemes are organized, taking into account the situation of different owners。
Option 1: old vehicles, vehicles of more than 10 years old, low vehicle residual value, short walk in major cities and sufficient driving experience. Only high risk + 3 million are purchased, with additional liability for medical out-of-service drugs, no vehicle loss, and no additional risk is selected. The package has the lowest premium, maintains the risk of major third-party accidents, provides for low-cost maintenance and has the highest value for money, i. E., buys a combination of only two core types of risk, as stated by a traffic friend。
Option ii: new vehicles, five years old, high value vehicles, new drivers and frequent high-speed trips. Risk exposure + 3 million + liability for medical out-of-service drugs + vehicle loss. The high cost of repairing the vehicle itself, combined with the vulnerability of newers to collisions, increases the risk of vehicle loss and covers the loss of their own vehicles. This portfolio is sufficiently comprehensive to require additional additional species, such as scratching, tyre insurance, etc。
A lot of drivers still have questions. How many times does a risk affect the premiums? Vehicle insurance premiums fluctuate, depending on the record of commercial risk exposures, and the risk exposure moves independently. In general, once a year, the premium discounts are cancelled for the following year; twice a year, the premium increases significantly; three or more times, the premium rises more sharply, and in serious cases some insurance companies raise the insurance threshold. Thus, small accidents are weighed against hundreds of dollars in small procrastination, with as little insurance coverage as possible, and avoid losing the risk-free discounts accumulated over many years。
There are also claims settlement concerns. After the accident, the police, the insurance company was contacted and photographs, medical records and maintenance papers were kept. After the vehicle has simmered, it is important that the engine is not activated twice, and the insurance company has the right to refuse compensation in the event that the engine is damaged as a result of the forced fire. This detail is not known to many of the owners, and the rain is running out of fire and the secondary launch is a very large area of compensation。
By clarifying another area of error, not much more than insurance, you can drive. Insurance is only responsible for financial compensation and does not exempt from penalties for offences such as drunk driving, poison driving and driving without a permit. Even if it is fully insured, the insurance company may refuse to pay compensation, while the traffic police are liable under the law and do not feel compelled to ignore traffic regulations。
Car insurance is essentially a risk planning exercise, not a blind pursuit of risk species. We spend that money every year with the goal of preventing a major accident and putting hundreds of thousands of debts on our shoulders. The loss of a small repair vehicle is sufficient to cover itself, and it is not necessary to pay for low-probability events on an annual basis. Many owners have never looked closely at the insurance policy, and every year they renew it, suggesting that you take out the previous year’s insurance policy, remove the additional risks that have never been used, streamline the package, and spend the money on the real security against bankruptcy of the high-prime risk。
I'd like to ask if your car is new or old? How much are the insurance premiums for each year, and will they be recommended by operators for additional insurance? You're welcome to talk about your insurance experience in the comment area, or what kind of insurance you think is worth buying. It was felt useful for you to welcome some attention and to continue sharing practical vehicle knowledge。
