Is it mandatory to purchase full coverage insurance for a new car?
4 Answers
New cars do not require full coverage insurance. However, basic insurance such as compulsory traffic insurance must be purchased. Below is a detailed introduction to car insurance: 1. Vehicle insurance: Also known as motor vehicle insurance, or simply car insurance, it refers to a type of commercial insurance that covers liability for personal injury or property damage caused by natural disasters or accidents involving motor vehicles. 2. Others: Car insurance is a type of property insurance. In the field of property insurance, car insurance is a relatively young category. This is because car insurance emerged and developed alongside the appearance and popularization of automobiles. Unlike modern motor vehicle insurance, early car insurance primarily focused on third-party liability insurance and gradually expanded to cover risks such as collision damage to the vehicle body.
As a new car owner who just purchased my vehicle last year, I understand that insurance should be chosen based on one's financial capability. Comprehensive insurance for a new car isn't mandatory—only compulsory traffic insurance is legally required. Comprehensive insurance is usually optional and includes additional coverage like collision and theft protection, but the premiums are quite expensive, costing several thousand yuan a year. I opted for basic third-party liability insurance plus vehicle damage insurance, saving almost half the cost, mainly because I drive very carefully and always park in well-monitored areas. New cars depreciate quickly in the first few years, and in case of minor accidents, repair costs might not be as high as expected. So unless you have a generous budget or frequently drive in remote areas, comprehensive insurance isn't necessary. I recommend comparing quotes from different insurance companies and checking their package options—some offer higher deductible plans that can save you even more. In short, from an economic perspective, comprehensive insurance isn't compulsory. Just make a decision based on your driving habits and budget, and don't be misled by 4S store sales tactics.
As a family driver who prioritizes safety, I highly recommend purchasing full coverage insurance for a new car, even though it's not legally mandatory. With two kids in the family and frequent road trips, the high value of a new car means that repair or replacement costs after an accident or theft can be financially devastating. Full coverage insurance provides a safety net in such scenarios. While some car owners might opt for basic insurance to save money, it's worth considering the long-term risks: new cars are more prone to breakdowns in their early years, and insurance can alleviate the financial stress from unexpected expenses, including damages caused by natural disasters like hailstorms. Premiums are determined based on the car model and region, and using online comparison tools can help find a reasonable rate. Safe driving is a given, but having insurance as a backup offers peace of mind, especially when navigating congested urban roads.
As a new driver, I also struggled with insurance when I bought my first car. Comprehensive insurance isn't mandatory for new cars - only compulsory traffic insurance is required. Salespeople might push for it, but after researching, I found it unnecessary to spend extra and opted for the basic package with some added damage coverage. The key is assessing your driving skills: new drivers are prone to minor scrapes, so higher premiums for repair coverage can be worthwhile. Cars under warranty usually don't have major issues, and you can always upgrade coverage if needed. Just focus on regular maintenance and don't over-rely on insurance.
