What Insurance Do You Need to Pay After Buying a Car?
3 Answers
Here are the insurances you need to pay after buying a car: 1. Compulsory Traffic Insurance: This is a mandatory insurance required by the state. If you don't purchase it, you may face fines if caught by traffic police. The coverage is limited, mainly for third parties, and does not cover your own vehicle. 2. Third-Party Liability Insurance: This is used to compensate for losses caused by the owner to third parties in terms of personal injury or death. This is a must-have for both your own and others' protection. 3. Vehicle Damage Insurance: This covers losses to your own vehicle caused by natural disasters and accidents. It is recommended for new drivers. 4. No-Deductible Insurance: An additional insurance that transfers the responsibility the owner needs to bear to the insurance company, reducing the owner's losses. If you have both Vehicle Damage Insurance and Third-Party Liability Insurance, it's best to also purchase No-Deductible Insurance.
When I first bought my new car, the insurance part was quite a headache. The most basic one is compulsory traffic insurance, which is mandatory by the state—you can't drive without it. For commercial insurance, I recommend focusing on third-party liability insurance. In case you hit someone else's car or a pedestrian, at least the insurance company can cover it. I bought coverage for 2 million. Vehicle damage insurance is also very practical, especially since repairs for scratches on a new car are expensive, and it can reimburse most of the cost. I added the no-deductible option, so I don’t have to pay out of pocket when making a claim. I skipped the scratch insurance, as minor scratches can be covered under the vehicle damage insurance. Passenger liability insurance depends on your needs; if you often carry family members, you might want to add it. Theft insurance is basically unnecessary these days, as whole-car thefts are much rarer.
I've bought three cars and am now very familiar with insurance configurations. Compulsory traffic insurance is a must—it's the baseline. For commercial insurance, I mainly purchase three types: vehicle damage insurance for easy repairs to my own car, third-party liability insurance with sufficient coverage (I've opted for 3 million yuan, as hitting a luxury car can be terrifyingly expensive), and no-deductible insurance, which is a great deal for just a few dozen yuan and saves hassle during claims. Others like water damage insurance or glass insurance I skip unless you live in an area prone to heavy rain. Passenger liability insurance depends on personal circumstances; since I mostly drive alone, it's basically unnecessary. Honestly, as long as the main types of insurance are adequately covered, additional ones really aren't needed, saving a significant amount of money each year.
