When taking a loan to buy a car, the first beneficiary on the insurance policy is usually the bank or financial institution that borrowed the loan. The third party of all car insurance types is the most important. After all, you don’t have to drive if your car is destroyed, but you cannot be exempted from compensation from others. When buying car insurance, you should put the ability to compensate others for their losses first.

Otherwise, the only thing you can do is to sell the house after the accident occurs, or get a divorce to preserve the property. The prerequisite for taking advantage of the above mentioned loopholes is that the other party has not applied for property preservation of the assets. Therefore, in order to avoid similar troubles, it is better to have sufficient third-party insurance coverage. Extended information

The compensation method of motor vehicle insurance is generally repair, but if the replacement price of the vehicle is cheaper than the repair cost, the insurance company is likely to declare the vehicle a total loss. Generally speaking, the insured amount of motor vehicle insurance is the purchase price of the new car or the value of the vehicle at the time of insurance. However, the vehicle will depreciate during use, and the insurance company will set an absolute deductible.

So in the case of a total loss, the compensation will definitely be lower than the insured amount. The insurance period of this kind of insurance is generally one year or less. If no claims are made during the insurance period, you can enjoy a no-compensation preferential rate when renewing the insurance.

Baidu Encyclopedia-Motor Vehicle Insurance