Traffic insurance is a mandatory type of insurance, while motor insurance is an optional one. Any attempt to drive without traffic insurance will result in the vehicle being impounded and the owners being fined. Comprehensive motor insurance covers the loss and damage to your own vehicle in the event of an accident, while traffic insurance covers the loss and damage to the other party. There is a difference between traffic insurance prices and motor insurance prices. Since the coverage provided by motor insurance is more comprehensive than that of traffic insurance, the price of motor insurances are relatively higher. Coverage limits for traffic insurance are standardized for all insurance companies. The coverage provided through motor insurance policies, however, may vary according to the policy you have purchased. The limits for traffic insurance are set by the state. The material and physical losses incurred by the other party are covered at a certain rate. In the case of comprehensive motor insurance, the scope of the policy can be extended as desired, and it is the insurance company and the vehicle owner, not the state, who sets the limits.