Is it mandatory to purchase full coverage insurance for a new car?
2 Answers
Purchasing full coverage insurance is not mandatory for a new car. Apart from the compulsory traffic insurance, other commercial insurance policies can be purchased based on individual needs. If the coverage provided by the compulsory traffic insurance is deemed sufficient, there is no need to purchase additional commercial insurance. However, if the coverage is considered inadequate, commercial insurance can be bought to supplement the areas not covered by the compulsory traffic insurance. Currently, most car owners generally opt for the following types of commercial insurance: 1. Vehicle Damage Insurance: This insurance covers the costs incurred due to vehicle damage caused by traffic accidents during driving. 2. Third-Party Liability Insurance: This insurance refers to the financial liability that the insured or their permitted driver must bear legally 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. 3. Passenger Liability Insurance: This insurance covers the compensation liability that the insured must bear legally when an accident occurs during the use of the insured vehicle by a permitted qualified driver, resulting in bodily injury or death to passengers in the vehicle. The insurance company will compensate according to the insurance contract. 4. Comprehensive Theft Insurance: When the insured vehicle is stolen, robbed, or forcibly taken, resulting in vehicle loss, or when the vehicle is damaged or parts and accessories are lost during the theft, robbery, or forcible taking, the insurance company will compensate according to the contract.
As a young person who just got a new car, I was also quite conflicted about this issue at first. Is full insurance mandatory for a new car? Legally speaking, only compulsory traffic insurance is required nationwide, which is like a basic liability insurance—you can't skip it. However, comprehensive insurance, such as car damage insurance and third-party liability insurance, is not mandatory; you have the choice. Personally, I recommend getting full insurance because the value of a new car is high, and even minor scratches or accident repairs can be costly—full insurance can cover most of the losses. Plus, new cars are more likely to be targets, so theft insurance is also included. If you're on a tight budget, you can just opt for compulsory insurance and a few core coverages, but don’t forget to compare prices and bundled discounts from different insurers. My friend saved a bit of money but ended up paying thousands out of pocket for a minor accident and now deeply regrets it. Buying a car is a joyful thing, but protecting your investment is even more important—don’t let carelessness ruin the experience.
