Is it mandatory to purchase full coverage insurance for a new car?
3 Answers
The first year of a new car does not require the purchase of full coverage insurance. Insurance can be purchased based on your actual needs. Typically, new cars are insured with full coverage because the combination of a new car and an inexperienced driver is more prone to accidents. However, by the second year, many car owners choose their insurance coverage based on their needs. When registering a new car, in addition to paying various taxes and fees, it is mandatory to purchase compulsory insurance, which is required by the state. The concept of full coverage insurance usually includes the following types of insurance: Third-party liability insurance: Under the terms of third-party liability insurance, the insurance company will compensate for the losses incurred if you collide with another vehicle. Vehicle damage insurance: Under the vehicle damage insurance clause, the insurance company compensates for losses to your own vehicle due to natural disasters or accidents. Passenger liability insurance: If passengers in your car are injured while you are driving, the insurance company will compensate for the losses of the driver and passengers. Spontaneous combustion insurance: Under the spontaneous combustion loss insurance clause, if the insured vehicle catches fire due to internal structure or loaded cargo, the insurance company will compensate for the vehicle loss. Theft insurance: If the vehicle is stolen or robbed after purchasing theft insurance, the insurance company will compensate for the total loss of the vehicle after 60 days, provided the local public security criminal investigation department has filed a case.
When I first bought a new car, I researched insurance options. Since new cars are valuable, compulsory traffic insurance is mandatory—you can't drive without it. However, comprehensive insurance, which includes coverage for vehicle damage, third-party liability, and theft, is optional. For the first few years of owning a new car, it's advisable to get comprehensive coverage. Vehicle damage insurance covers repairs for your own car's scratches—new car paint is expensive to fix. Third-party liability insurance protects you from paying compensation if you hit someone, which is crucial in crowded cities where accidents carry heavy responsibilities. Theft insurance might be worth it for new cars, especially if you often park in unsafe roadside areas. To save money, you can opt for just compulsory insurance plus third-party liability with no deductible—this combination is practical and costs less than a thousand yuan. Always compare quotes from multiple companies. Last time I skipped full coverage and ended up paying out of pocket for a minor accident—I regretted it. So, while comprehensive insurance isn't mandatory for new cars, I usually choose it for peace of mind.
With over 20 years of driving experience, I know the ins and outs of car insurance. Compulsory traffic insurance for new cars is mandatory—no way around it if you want to drive. But what about comprehensive coverage? Not really necessary. Third-party liability insurance is the key—get at least 1 million in coverage to handle compensation in case of accidents, no hesitation there. As for collision insurance for new cars? Take it or leave it—if you're a skilled driver, park in a garage often, and have a low accident rate, don't waste the money. A friend of mine saved a thousand bucks by skipping collision insurance and upgraded his sound system instead—pretty smart. Total costs depend on the city and coverage amount, so shop around and negotiate. Bottom line: just cover the essentials—compulsory insurance + third-party liability + no-deductible coverage—that's practical enough. Don’t fall for sales pitches pushing full coverage; saving wisely is the real win.
