There are many types of car insurance. Many may be concerned. I want to keep my insurance premiums as low as possible, but I don’t know how to choose one. Also, even if the insurance premium is cheaper, it will be overwhelming if the emergency compensation is insufficient. Therefore, this time, we will present the tips on how to select the most suitable car insurance with a good balance between insurance premiums and compensation, so do check it out.

What is the insurance premium system for automobile insurance?

The basic insurance system, like car insurance, consists of mutual aid that spends money to compensate the victim. As a result, many insurers tended to introduce their own form of mutual partnership until the law was amended in 2000. The breakdown of premiums paid by the insured to the insurance company are net premiums and additional premiums. Net premiums are the amount used for insurance claims paid in the event of an accident. Additional premiums, on the other hand, are the money an insurance company spends to keep its business going, such as the salaries of employees who work for the insurance company and a majority commission for the agency.

What are compulsory automobile liability insurance and voluntary insurance?

In addition, there are two types of auto insurance: liability insurance and voluntary insurance. Auto insurance is insurance that car owners are required to carry under the Auto Insurance Act. Auto liability insurance covers medical and comfort costs in the event that another person is injured or killed in a car accident.

The maximum payment is $ 289,300 per victim at death, $ 385,700 for disability damages, and $ 11,570 for injury damages. However, the victim’s belongings, such as an injury or the car the accident partner was riding in, will not be compensated.

On the other hand, voluntary insurance is insurance that covers damages that cannot be covered by mandatory automobile liability insurance. For example, there is personal liability insurance that covers personal liability that exceeds the payment limit for liability insurance. In addition, we will cover liability insurance in the event of damage to someone else’s building or car due to an accident, compensation for personal injury, and compensation for damage to passengers in the event of injuries due to a car accident. And so on. Many car owners have their own insurance in addition to car liability insurance to prepare for accidents.