What Insurance Does a Sedan Need?
3 Answers
Sedans generally need to purchase three types of insurance: compulsory traffic insurance, vehicle damage insurance, and third-party liability insurance. Insurance should be selected based on your actual situation. Compulsory Traffic Insurance: As one of the legally required insurances, compulsory traffic insurance mandates that the insurance company must pay a certain amount to the affected party if any loss is caused to a third party, regardless of fault or whether compensation is required. However, in cases of at-fault traffic accidents, the cost may increase by 10%-30% based on annual occurrences or frequency. Vehicle Damage Insurance: Vehicle damage insurance is also typically necessary. For everyday issues like scratches, repair costs can be claimed from the insurance company. Especially after an accident, if the responsible party cannot be identified, the insurance company will cover 70% of the costs. However, compensation under vehicle damage insurance is based on the vehicle's usage time and depreciation, with an annual depreciation rate usually set at 7.2%. Third-Party Liability Insurance: Fully known as third-party liability insurance, it is a type of liability insurance. It covers the financial compensation that the insured must legally or customarily bear due to their own fault or negligence causing personal injury or property damage to a third party, with the insurer assuming this responsibility.
When driving a sedan, insurance is essential. The first must-have is compulsory traffic insurance, which is mandatory by the state and costs a few hundred yuan a year. Without it, the car cannot be driven on the road. In case of an accident, it covers basic liabilities. The second is commercial insurance: vehicle damage insurance covers the repair costs of your own car, especially worth buying for new cars or areas prone to accidents; third-party liability insurance covers compensation when you hit someone else, and it's advisable to opt for higher coverage, with hundreds of thousands of yuan for added safety; theft insurance depends on the city's risk level—better safe than sorry in chaotic urban areas. Passenger liability insurance should not be overlooked either, as it protects the safety of passengers. I recommend not skimping on insurance to save money—regret comes too late when accidents happen. Choose suitable coverage based on your driving frequency and parking environment, and look for discounted options on online insurance platforms.
Having driven for over a decade, I've learned that car insurance should be practical. Compulsory traffic insurance is a must—no questions asked, it's illegal without it. In commercial insurance, I prioritize third-party liability coverage, starting at least at 500,000 yuan; I've seen real cases where low compensation bankrupted people. Comprehensive coverage is cost-effective for new cars, but older cars with low value might skip it to save hassle. Passenger liability insurance is essential, especially for long trips with passengers; theft coverage depends on parking safety—save money if your neighborhood is secure. Always compare insurers; I prefer large companies for faster, hassle-free claims. Make it a habit to review policies regularly—insurance isn't just paperwork, it's a safety net.
