Is it okay not to buy vehicle damage insurance?
4 Answers
Vehicle damage insurance is optional because it is a commercial insurance, and car owners can choose to purchase it or not based on their needs. However, it is recommended that car owners still purchase vehicle damage insurance, as traffic accidents during driving may cause vehicle damage. If vehicle damage insurance is purchased, the insurance company will be responsible for compensating the reasonable costs incurred. Below is a detailed introduction to commercial vehicle insurance: 1. Vehicle damage insurance: Used to compensate for losses caused by natural disasters and accidents to the vehicle itself. It is recommended for new drivers to purchase. 2. Third-party liability insurance: Used to compensate for losses caused by the car owner to third-party personal injuries or deaths. This must be purchased as it provides protection for both yourself and others. 3. No-deductible insurance: An additional insurance that transfers the responsibility the car owner needs to bear to the insurance company, reducing the car owner's losses. If both vehicle damage insurance and third-party liability insurance are purchased, it is best to also purchase no-deductible insurance. 4. Theft and robbery insurance: Used to compensate for damages caused by vehicle theft, robbery, or seizure. It is recommended for car owners without a garage to purchase. 5. Passenger liability insurance: Used to compensate for losses caused to the driver and passengers in the vehicle due to traffic accidents. Premiums are generally paid per seat. It is recommended for new drivers or family vehicles to purchase. 6. Spontaneous combustion insurance: Used to compensate for losses caused by fires due to the vehicle's electrical appliances, wiring, or other internal reasons. It is suitable for older vehicles. 7. Glass breakage insurance: Used to compensate for the separate breakage of the windshield and window glass. The cost of replacing glass is very expensive, so it is recommended for vehicles often driven in unsafe areas to purchase. 8. Body scratch loss insurance: Used to compensate for losses caused by human, malicious, or accidental scratches during driving.
I've been driving for over a decade, and whether to get collision insurance really depends on the situation. It's best to buy it for a new car—even a scratch can cost thousands to fix, and insurance saves you the hassle. After five or six years, you might consider dropping it, as the car's value depreciates and repairs might cost less than the premiums. But keep two things in mind: first, drive carefully—if you have a single-vehicle accident, you'll have to pay out of pocket; second, avoid financing a car, as banks usually require collision coverage. My neighbor Lao Li’s car got hit by hail last time, and without collision insurance, he had to pay for the repairs himself—it really hurt. Either way, you need to assess your own risk tolerance.
Young people, don't just focus on saving money by skipping auto insurance! My colleague bought a used Corolla right after starting work, saved two years' worth of premiums, but ended up rear-ending a Mercedes. The other party's insurance company paid out 38,000, while he had to fork out over 10,000 for his own repairs. Car repairs are so expensive these days—just replacing a door can cost 7,000 to 8,000. Plus, insurance covers natural disasters like heavy rain and hail; many cars were flooded during this year's typhoon season. If you park in a safe spot and drive extremely carefully, you might take the risk with an old car. But for your first car, it's best to get full coverage and adjust later once your skills improve.
Vehicle damage insurance is not mandatory, it all depends on your budget and risk preference. I've researched that a new car worth 100,000 yuan costs about 2,000 yuan in premiums, which drops to a few hundred after five years. Do the math: if you don't file a claim in five years, the premiums could cover four new tires; but a major accident could be devastating. Last time I saw a BMW rear-end at an intersection, the front was completely destroyed, probably costing 50,000 yuan to repair. Also consider your driving environment—old neighborhoods without garages are prone to scratches, and daily highway driving is risky. If you're hesitant, you can opt for a higher deductible to lower premiums. Remember, compulsory traffic insurance only covers others, offering no protection for your own car.
