Is Full Coverage Insurance Mandatory in the First Year of Car Purchase?
3 Answers
Full coverage insurance is not mandatory for a new car in the first year, and you can purchase insurance according to your needs. Typically, new cars are often insured with full coverage because the combination of a new car and an inexperienced driver increases the likelihood of accidents. However, when renewing insurance in the second year, car owners can choose the coverage items based on their own needs. Usually, when registering a new car, in addition to paying various taxes, it is also necessary to purchase compulsory traffic insurance, which is a mandatory requirement by the state. The concept of full coverage insurance typically includes the following types of coverage: Third-party liability insurance: This refers to the third-party liability insurance clause, where the insurance company compensates for the other party's losses if you collide with them while driving. Vehicle damage insurance: This is the vehicle loss insurance clause, where the insurance company compensates for the loss of your own vehicle in case of natural disasters or collisions. Passenger liability insurance: This is the motor vehicle passenger liability insurance clause, where the insurance company compensates for the losses of the driver and passengers in case of injuries during an accident.
It's not mandatory to purchase full coverage insurance in the first year of car ownership, as legally only compulsory traffic insurance is required. Last year, I bought a new car and thought full coverage was too expensive, so I only got the compulsory insurance to save money. Six months later, a minor accident damaged the front of my car, costing over 10,000 yuan in repairs—all out of my own pocket. It was a painful lesson. Now, looking back, new cars are valuable and prone to issues, especially when you're inexperienced or driving in unfamiliar environments. Full coverage protects against major risks like collisions, theft, and natural disasters. Although the premiums are higher, spreading the cost makes it more economical in the long run. If you still have an outstanding car loan, the bank may require full coverage; otherwise, they might not approve the loan. So, from a safety perspective, I strongly recommend full coverage in the first year—don’t make the same mistake I did by trying to save money and regretting it later.
From what I understand, comprehensive insurance is not mandatory in the first year of car ownership, but compulsory traffic insurance is a must. New cars have high value in their first year, are driven frequently, and are prone to minor accidents, making comprehensive insurance essential for covering unexpected losses. I've seen many cases where owners only had compulsory insurance and couldn't cover costs for collision repairs or smashed windows, ending up paying thousands out of pocket. For financed cars, financial institutions usually require comprehensive insurance as collateral protection. If the budget is tight, you can start by comparing prices for a basic package to save money by reducing coverage items. But overall, the first year carries higher risks, making comprehensive insurance a more reassuring choice, and the premiums spread over months aren't a significant burden.
