What Insurance Do New Cars Need to Purchase Now?
3 Answers
Here are the insurances that new cars need to purchase now: Compulsory Traffic Accident Liability Insurance: This type of insurance is mandatory, and all car owners must purchase it. The only drawback is that the compensation amount is relatively small. Third-Party Liability Insurance: This insurance serves as a supplement to the compulsory insurance. Both provide compensation for third parties, but in the event of an accident, the payout will be determined based on the insured party's degree of responsibility. In many traffic accidents, insurance contracts may include clauses for non-deductible coverage, where the insurance company waives the deductible. Vehicle Damage Insurance: Vehicle damage insurance covers the loss of your own car, but not all losses are covered. For example, standalone damage to glass, side mirrors, or tires (including rims) is not covered by the insurance company. Additionally, the insurer will not compensate for incidents such as earthquakes, drunk driving, or hit-and-run accidents.
When buying a new car now, you must first arrange compulsory traffic insurance, which is a legal requirement. You can't get licensed plates or drive on the road without it, otherwise you'll face fines. New cars have high value, and any bumps or scratches are particularly distressing, so I recommend adding vehicle damage insurance to cover your own car's damages - especially since electronic equipment repairs are extremely expensive. Third-party liability insurance is also crucial, with coverage starting from 1 million yuan, as accidents in big cities can lead to unaffordable compensation. Theft insurance and no-deductible insurance are worth considering too - new cars are easy targets for thieves, and the latter reduces your out-of-pocket expenses. Passenger liability insurance protects those in your car - safety comes first. In short, a full insurance package for new cars provides the most peace of mind, and it's cost-effective to compare quotes from multiple insurance companies.
I bought a new car myself and took insurance quite seriously. Compulsory traffic insurance is the foundation, which must be obtained before hitting the road. I opted for vehicle damage insurance because repairs for scratches and dents on a new car can be expensive. I also set the third-party liability coverage at 1.5 million yuan, just in case I hit a luxury car and couldn't afford the compensation. I added some theft insurance since new cars are more prone to theft, especially in my neighborhood where security isn't great. No-deductible insurance and scratch insurance are also practical, covering minor damages without digging into my pocket. Though the insurance cost for a new car is higher, in the long run, it ensures quick claims and peace of mind, making daily driving more secure. Regularly reviewing and updating the insurance policy is essential to avoid missing important details.
