Is Full Coverage Insurance Mandatory for New Cars?
2 Answers
Full coverage insurance is not mandatory for new cars. Commercial auto insurance includes the following types: Collision Coverage: Collision coverage can reimburse expenses incurred from vehicle damage caused by traffic accidents during driving. Third-Party Liability Insurance: This refers to the financial liability that the insured or their permitted drivers must legally bear when a traffic accident occurs during the use of the insured vehicle, resulting in bodily injury, death, or direct property damage to a third party. The insurance company will compensate according to the insurance contract. Comprehensive Theft Coverage: When the insured vehicle suffers total loss due to theft, robbery, or seizure, or sustains damage or loses parts/accessories during such incidents requiring repair, the insurance company will compensate as stipulated in the contract.
I also considered this issue when I first got my new car. While full coverage insurance isn't mandatory for new cars, compulsory traffic insurance is required by law. Full coverage falls under commercial auto insurance, including collision insurance and theft insurance, which are entirely optional. However, given the high value of new cars and complex urban traffic conditions where minor collisions frequently occur, not having full coverage means paying out of pocket for repairs in case of accidents - which can be costly. For example, my friend's new car scraped against a wall corner without full coverage, costing over 10,000 yuan in repairs. I recommend prioritizing collision insurance combinations for new cars; the monthly cost allocation is actually quite affordable compared to unexpected expenses. Here's the math: maintenance costs are lower in the first few years of a new car, making insurance protection more cost-effective.
