The amount of third party liability insurance to be insured needs to be considered based on a number of factors. In general, it is necessary to consider the local ** compensation standard and the financial level of the individual. Here are some examples:
1.The city is congested with traffic and many high-end vehicles:In cities with rapid economic development, there are more and more luxury cars. In the event of a collision with a luxury car, the sum insured of 500,000 may not be enough. In addition, personal injury compensation is also complex, and may include nine items, including medical expenses, lost work expenses, nursing expenses, transportation expenses, nutrition expenses, funeral expenses, living expenses for dependents, death compensation, and moral damages. The death compensation for an individual is generally around 700,000. Therefore, if possible, you can choose to purchase an insured amount of 1 million or more to ensure more adequate protection.
2.Small cities or rural areas with good traffic environment:If you live in a small third- or fourth-tier city or rural area with a better traffic environment, fewer luxury cars, and a relatively low probability of traffic accidents, you can consider choosing an insurance amount of 500,000 yuan to save costs.
It should be noted that after the car reform in 2020, the compensation limit of third-party liability insurance will be adjusted from 5-5 million to 10-10 million, and the compensation will be increased. This is especially useful for large commercial vehicles, where a higher sum insured can provide better financial compensation and the ability to resolve disputes in the event of an accident involving multiple people**.
In general, the sum insured of third-party liability insurance needs to take into account factors such as personal financial ability, local traffic environment, and vehicle type. Choosing the sum insured wisely can ensure adequate financial protection in the event of an insured event. All three