Does a New Car Come with Insurance from the Factory?
2 Answers
New cars do not come with insurance from the factory. Vehicle insurance can be categorized into compulsory insurance and commercial insurance based on its nature. Compulsory insurance (also known as compulsory traffic insurance) is mandated by the state, while commercial insurance is optional, allowing car owners to choose coverage based on their individual needs. Compulsory Insurance (Traffic Insurance): This is a type of insurance required by law; without it, vehicles are not permitted to operate on the road. A new car cannot be registered without purchasing compulsory insurance. Additionally, a copy of the compulsory insurance policy must be submitted during the vehicle's annual inspection. In the event of an accident, compulsory insurance provides compensation to third-party victims. According to regulations, compulsory insurance has specific compensation limits: up to 110,000 for death or disability, 10,000 for medical expenses, and 2,000 for property damage. These are the maximum payout limits for compulsory insurance. Third-Party Liability Insurance: The coverage amount for third-party liability insurance varies depending on the policy purchased. It is recommended to purchase a minimum coverage of 1 million or 2 million to ensure that no additional costs are incurred if the vehicle is fully at fault in a traffic accident. Vehicle Damage Insurance: Vehicle damage insurance protects the vehicle itself. Whether the accident involves two parties or is a single-vehicle incident, the insurance company will cover the repair costs for the at-fault party within the specified limits. No-Deductible Insurance: After purchasing vehicle damage and third-party insurance, the insurance company does not cover 100% of the loss amount during a claim. However, with no-deductible insurance, the insurer will fully reimburse the actual repair and loss costs.
When I first bought my new car, I naively thought it came with insurance from the factory. The dealer later explained in detail that new cars leave the factory completely bare, with no insurance coverage at all. You have to arrange insurance yourself after purchase, such as compulsory traffic insurance, while commercial insurance is optional but comprehensive coverage is recommended. Before picking up the car, I compared prices from several insurers on my phone and bought the insurance online directly, saving time. Don't forget that new cars are valuable—driving without insurance means bearing all repair costs and liabilities in case of scratches or accidents, which is a huge hassle. Experience tells me that arranging insurance in advance is key, don't wait until you get the car to panic.
