What are the mandatory insurances for a car?
4 Answers
Motor vehicles generally require compulsory insurance, including compulsory traffic accident liability insurance, vehicle damage insurance, third-party liability insurance, and no-deductible insurance. Below are detailed introductions of each insurance: Compulsory Traffic Accident Liability Insurance: Full name is "Compulsory Traffic Accident Liability Insurance for Motor Vehicles". Driving without this insurance is illegal. Vehicle Damage Insurance: This insurance compensates for vehicle damage, reducing losses from collisions and other damages. Third-Party Liability Insurance: In case of an accident causing losses to a third party, the owner can receive corresponding compensation. After the auto insurance reform, the coverage of vehicle damage insurance has expanded, incorporating previously optional insurances like no-deductible insurance and water damage insurance into the vehicle damage insurance, alleviating some car owners' difficulty in choosing.
I've been driving for over a decade and often discuss car insurance with friends. There's only one mandatory basic coverage - the statutory third-party liability insurance, which covers others' bodily injuries and property damage in accidents. Driving without it is illegal, and traffic police will impose fines and deduct points if caught. I advise new drivers not to skimp on this - the premium is affordable, just a few hundred yuan annually, but can save you huge compensation costs in case of accidents. While voluntary coverages like vehicle damage or theft insurance are useful depending on budget, compulsory insurance is absolutely essential. I always check this first at renewal time for peace of mind. By the way, adding water damage coverage brings extra security if driving in remote areas with poor road conditions.
When I first bought my car, I didn't know what was mandatory. A friend directly reminded me: compulsory liability insurance is a legal requirement. Simply put, it covers the risk of you having to compensate others if you hit someone or damage their car. Without it, you can't even get your license plate, and annual inspections won't pass. I opted for the lowest tier, paying just a few hundred bucks monthly—super cost-effective. Of course, I added glass coverage myself since I often drive on highways and worry about rocks cracking the windshield. Remember, don't bargain with insurers over this basic coverage; they all know it's compulsory. Drive carefully, but insurance has your back.
When it comes to auto insurance, the most basic mandatory coverage is statutory third-party liability insurance. It protects against losses incurred by third parties in accidents, such as medical expenses or vehicle repair costs. If you don't have it, not only is it illegal, but you could also face detention. Premiums depend on the vehicle type, typically ranging from 300 to 500 yuan per year for small cars. I usually recommend adding a no-deductible rider to save more money. For convenience, you can purchase it directly online.
