How to Get the Most Cost-Effective Car Insurance?
2 Answers
Many car owners tend to purchase insurance at the 4S shop when buying a car. However, buying insurance at a 4S shop is generally more expensive due to the commissions taken by the dealership. Therefore, it's more cost-effective to buy insurance online directly after purchasing the car, as this eliminates middlemen and reduces costs. Additionally, checking policy details and claims later on becomes more convenient and efficient. Here’s a detailed breakdown: 1. Car Insurance: After buying a car, the two major expenses are maintenance and insurance. Car insurance includes various types of coverage, primarily divided into two categories: main insurance and additional insurance, classified based on risk levels. The four main types of car insurance (Vehicle Damage Insurance, Third-Party Liability Insurance, Passenger Liability Insurance, and Theft Insurance) fall under commercial insurance, while Compulsory Traffic Insurance (CTI) is mandatory by law. All other types of insurance are optional. 2. Coverage Ratio of the Four Main Insurances: Generally, for safety reasons, most people opt for all four main types of car insurance when purchasing. Overall, these four main insurances are highly practical. Among them, Vehicle Damage Insurance, Third-Party Liability Insurance, and Passenger Liability Insurance have the highest coverage rates, while Theft Insurance can be chosen based on individual circumstances.
Having driven for almost ten years, my experience tells me that to get cost-effective car insurance, you need to compare prices frequently. Before your insurance expires each year, spend some time searching online for quotes from several companies, such as big names like Ping An, PICC, and Pacific. The price difference can be hundreds of yuan—don’t assume loyal customers always get the best deals. A clean driving record is crucial; no accidents mean significant discounts. Raising the deductible to around 1,000 yuan can immediately lower your monthly premium. Avoid unnecessary coverage—older cars only need liability insurance. Review your policy regularly; changes like switching jobs or moving can alter your risk profile, so adjustments may be needed. Calling your insurer to discuss options can help—sometimes, customer service can tailor a better plan. Good driving habits also save money—a single ticket can raise your premium by 20%, so driving steadily is the most cost-effective.