How to Buy Insurance After Purchasing a New Car?
1 Answers
After purchasing a new car, buying insurance includes the following: 1. Compulsory Traffic Insurance: Compulsory Traffic Insurance is a mandatory insurance required by Chinese law for every car owner. The insurance premium for Compulsory Traffic Insurance is uniformly priced nationwide based on the number of vehicle seats. If no accidents occur during the insurance period, the renewal premium the following year will be reduced by 10% from the base premium, with a maximum reduction of 30%. 2. Vehicle Damage Insurance: Vehicle Damage Insurance refers to compensation by the insurance company within a reasonable range when the insured or an authorized driver causes damage to the insured vehicle in an accident. 3. Third-Party Liability Insurance: Third-Party Liability Insurance covers compensation for bodily injury or direct property damage to others (excluding the driver and passengers of the insured vehicle) caused in an accident. Premiums vary based on different coverage levels. 4. No-Deductible Insurance: The full name of No-Deductible Insurance is the 'No-Deductible Rate Special Clause,' which is an additional type of insurance. In many accident compensations, the insurance company may apply a deductible rate of 5%-20%. The cost of No-Deductible Insurance is relatively low, with its premium = (Vehicle Damage Insurance + Third-Party Liability Insurance) × 20%.
