When taking delivery of a new vehicle, you can proceed with purchasing the corresponding auto insurance. For used vehicles, insurance should be bought in advance according to local regulations, typically ranging from 45 to 90 days prior. Required insurance for new vehicles includes: 1. Compulsory Traffic Insurance: Compulsory Traffic Insurance is mandatory in China and must be purchased for all vehicles. In the event of a traffic accident, the insurance company can only compensate the party that was hit, meaning the conditions for compensation are limited. Additionally, without this insurance, the vehicle will lose its eligibility for annual inspection. Therefore, Compulsory Traffic Insurance is essential. 2. Third-Party Commercial Liability Insurance: Most people opt for both Compulsory Traffic Insurance and Third-Party Insurance. Since the compensation amount from Compulsory Traffic Insurance is limited, purchasing Third-Party Insurance can cover the excess that Compulsory Traffic Insurance does not. This ensures more reasonable compensation in case of an accident. 3. No-Deductible Insurance: Unlike the first two, which are basic standalone insurance types, No-Deductible Insurance is an additional coverage for vehicles. Its role is that if you need compensation after an accident, the insurance company typically covers 80%. With No-Deductible Insurance, the remaining 20% that you would normally pay is also transferred to the insurance company, meaning you receive 100% compensation. Thus, purchasing this insurance is also highly advisable. 4. Vehicle Damage Insurance: Vehicle Damage Insurance is undoubtedly the most comprehensive necessary coverage. Whether your vehicle suffers from collisions, scratches, water damage, or other harm, you can receive compensation from the insurance company. The final compensation amount depends on various factors, including the cause of the incident and the extent of the damage.
