How to Purchase Insurance for Motor Vehicles?
3 Answers
To drive a car on the road, it is mandatory to purchase compulsory traffic insurance (CTPL). Additionally, other types of insurance can be purchased based on the owner's needs: 1. Compulsory Traffic Insurance (CTPL): CTPL is a mandatory insurance requirement. Consumers must purchase CTPL for their new cars to legally drive on the road. If a vehicle insured with CTPL is involved in a traffic accident, the insurance company will provide compensation within the coverage limits. 2. Vehicle Damage Insurance: If the insured or other permitted drivers cause an accident resulting in damage to the insured vehicle covered under vehicle damage insurance, the insurance company will bear the claim liability within reasonable limits, reducing the financial loss from vehicle damage. 3. Third-Party Liability Insurance: If the insured or other permitted drivers cause an accident involving a vehicle insured with third-party liability insurance, resulting in injury to a third party, and the insured is legally required to bear financial responsibility, the insurance company will cover the compensation. Third-party liability insurance generally serves as a supplement to CTPL, providing an additional layer of protection on top of CTPL. 4. No-Deductible Insurance: No-deductible insurance ensures full compensation (100%) for vehicle damage and third-party liability claims. By purchasing no-deductible insurance, the insured can transfer the portion of the claim they would otherwise bear to the insurance company, thereby reducing their financial burden after a traffic accident.
When I first bought a car, I was quite confused and didn’t know how to purchase insurance, so I spent a few weekends researching it. First, you need to get compulsory traffic insurance, which is mandatory by the state and covers your liability for others’ losses. Then there’s commercial insurance, where you can opt for third-party liability insurance to cover accident compensation and vehicle damage insurance to repair your own car. I compared quotes from several insurers like Ping An and Pacific Insurance and found that online platforms like Alipay or official websites are more convenient—just enter your license plate and vehicle details to get an instant quote. When buying, you need to choose the coverage amount; higher coverage is more expensive but safer—don’t skimp on protection just to save money. I finally completed the process via an app, saving time on visiting physical branches. Before buying car insurance, it’s best to check the vehicle’s maintenance records to ensure there are no hidden issues, otherwise the insurance might not pay out. After the first experience, renewing is much simpler—just remember to renew early before year-end to avoid price hikes.
As someone who commutes by car daily, I always look for ways to save money when buying car insurance. The key is to compare different options. Online tools like insurance apps provide instant quotes, quickly showing price differences between companies. For example, third-party liability coverage should be at least 1 million to avoid being unable to pay for luxury car damages, but increasing the deductible can lower premiums. Additionally, a no-claims record qualifies for renewal discounts, saving hundreds. I also check user reviews to choose companies with good service, making claims hassle-free. Don’t overlook policy details like post-accident reporting procedures—some offer free towing, which is practical. New drivers should prioritize coverage over price and keep digital copies of policies on their phones for easy access.
