Is Full Coverage Insurance Mandatory in the First Year of Car Purchase?
2 Answers
Full coverage insurance is not mandatory in the first year of car purchase. Below are the specific details about auto insurance: Compulsory Traffic Insurance: This is a legally required insurance that every car owner must purchase. It provides the most basic insurance claims when a traffic accident occurs. In the event of an accident, compulsory traffic insurance can assist the owner in covering hard-to-afford economic compensations. The compensation amount is determined based on the owner's liability proportion in the accident and whether it resulted in personal injury or death. Vehicle Damage Insurance: This insurance covers damage to the insured vehicle caused by an accident when driven by the insured or an authorized driver. The insurance company will provide compensation within a reasonable range. The premium for vehicle damage insurance is largely related to the purchase price of the car and the number of seats. Third-party Liability Insurance: This insurance covers compensation for personal injury or direct property damage to a third party (excluding the driver and passengers of the insured vehicle) caused in an accident, as stipulated by the insurance company. Whole Vehicle Theft and Robbery Insurance: This insurance service provides compensation for losses due to the entire vehicle being stolen or robbed. After a theft or robbery incident, if the public security authorities file a case and fail to locate the vehicle within 60 days, the owner must provide documents such as the vehicle registration certificate, vehicle license, and purchase invoice to prove the vehicle's origin and legality to receive the claim payment.
In the first year of car ownership, compulsory traffic insurance is legally mandatory, similar to compulsory liability insurance, which covers third-party injury compensation. Failure to purchase it will result in penalties and the inability to drive legally. Commercial comprehensive insurance, including vehicle damage insurance and theft insurance, is optional. Given the high value and risk associated with new cars, which are more prone to accidents or theft, it is advisable to opt for comprehensive insurance in the first year to protect your assets. Spending a bit more can save you from major troubles. Discuss customized plans with your insurance provider—don't skimp on small savings at the risk of greater losses.
