Auto/Car Insurance in China, Auto Insurance Policy Details in China

Car Insurance in China

You're going to drive a car in China; you're going to need some form of car insurance that - as with many other countries, China is a minimum standard for all drivers to have insurance before driving need to go. Here is an introduction to the types of cover on offer.

Traffic compulsory insurance

Traffic compulsory insurance covers third party liability (ie., Injury or death of another person holding the passengers in their vehicle, leaving the driver policy and cover in the event of an accident). Financial compensation to third parties is also covered, although limited. Holding the driver is not insured for the loss of policy for your car, or for self-injury.

Third party liability

Many drivers also will buy a separate third-party liability insurance policy. These policies are similar to traffic compulsory insurance - however, neither the driver nor the passengers are insured, holding policy. The main difference is that these policies have their own drivers for the desired maximum compensation rates (much higher than the limits available under traffic compulsory insurance) are allowed to choose.

Additional policies

The driver can also add a number of additional types of cover. Some of them get quite vague, but the most popular are:

·         Vehicle damage insurance, the policy holder cover damage to the vehicle.

·         Passenger insurance, seat cover and injury, or the death of the policy holder services sold.

·         Driver insurance, driver and injury cover to the policy holder.

·         Theft insurance, all items contained within the vehicle but not only cover theft.

Quota-free insurance. Under the compulsory traffic insurance, the policy holder is held responsible for an accident, they compensate themselves (ie. Insurance company will cover only 80 percent of compensation) must pay 20 percent. With a quota-free insurance policy, the insurance company paid, no matter who is held responsible for the accident will pay 100 percent.