Do I Need to Buy Car Insurance Every Year?
2 Answers
Car insurance must be purchased annually. Car insurance is divided into compulsory traffic insurance and commercial car insurance. Compulsory traffic insurance is mandatory and must be purchased; otherwise, the vehicle is not allowed on the road. Commercial car insurance is non-mandatory and can be purchased based on individual circumstances. However, since the compensation limit of compulsory traffic insurance is not high, in the event of a serious accident, the car owner may still need to bear financial compensation themselves, making commercial car insurance highly advisable. Below is an introduction to car insurance types: 1. Compulsory Traffic Insurance: This is a legally required insurance. If not purchased, traffic police may impose fines. The coverage is limited and mainly benefits third parties, not the owner's own vehicle. 2. Third-Party Liability Insurance: Covers compensation for third-party bodily injury or death caused by the car owner. This is essential for both personal and third-party protection. 3. Vehicle Damage Insurance: Covers losses due to natural disasters or accidents affecting the owner's vehicle. Recommended for new drivers. 4. No-Deductible Insurance: An add-on that transfers the owner's liability to the insurance company, reducing personal losses. If both Vehicle Damage Insurance and Third-Party Liability Insurance are purchased, No-Deductible Insurance is also recommended.
Speaking from my experience of driving for over a decade, I’ve always bought car insurance every year—it’s not something to take lightly. The law states that driving without valid insurance is illegal, and if you’re caught by traffic police or involved in an accident, you could face fines, vehicle impoundment, or even license suspension. I remember one year when I was too busy and forgot to renew my insurance, and then I got into a minor collision—I had to pay all the damages out of pocket, and I regretted it deeply. Now, a month before my insurance expires, I start contacting insurers to renew and compare different quotes to get the best deal. Car insurance typically lasts one year, and if you don’t renew on time, there’s a gap in coverage—driving during this period is risky and might even affect future premium discounts. In short, making it a habit to renew on time every year keeps you safe and worry-free.
