What are the main types of car insurance to purchase
3 Answers
Car insurance is divided into: compulsory traffic insurance and commercial insurance. Compulsory traffic insurance is mandatory as stipulated by national laws. Commercial insurance is optional and can be purchased at the owner's discretion. Below is a partial introduction to car insurance: 1. Components: Car insurance generally includes basic insurance and additional insurance. Basic insurance is further divided into vehicle damage insurance and third-party liability insurance. 2. Coverage: Vehicle damage insurance covers the loss of your own vehicle; third-party liability insurance covers damages to objects outside your own vehicle, such as people and public property you hit, or the other party's vehicle; passenger liability insurance covers personal and property losses within your own vehicle; theft insurance covers compensation when your vehicle is stolen; no-deductible coverage ensures 100% compensation in case of an accident. If no-deductible coverage is not purchased, you will bear 30% of the deductible for each accident.
I think the most crucial aspect of buying car insurance is to focus on the basic coverage. Compulsory traffic insurance is a must—it's mandatory by the state, and driving without it is illegal. Third-party liability insurance should also be sufficiently covered, especially since hitting a luxury car or causing injuries can result in high compensation costs. I recommend getting at least 2 million in coverage. Vehicle damage insurance is also essential, particularly for new cars, as it covers minor scratches or rear-end collisions. The no-deductible insurance is particularly useful in my opinion, as it can save you a lot of money. Lastly, passenger insurance is worth considering—it's just a few dozen yuan for peace of mind. Other types of insurance, like scratch or glass insurance, can be decided based on the condition of the car.
As a seasoned driver with ten years of experience, I recommend purchasing just four types of insurance: compulsory traffic insurance is a must-have; third-party liability insurance covers others, with 1 million as the minimum coverage; vehicle damage insurance protects your own car; and the no-deductible clause should be added to make claims hassle-free. As for insurance like spontaneous combustion, theft, or glass coverage, unless you live in a flood-prone area or drive a luxury car, they're just a waste of money. Once, a colleague's new car was hit by a falling tree, and the vehicle damage insurance covered it all, but the scratch insurance he bought went unused for five years. Remember the core principle: prioritize coverage for people and major incidents, and handle minor scratches out of pocket if possible.
