What insurance is necessary for a new car?
2 Answers
New cars must have compulsory traffic insurance in the first year, and commercial insurance can be selected based on actual circumstances. The details are as follows: Compulsory Traffic Insurance: Compulsory traffic insurance is a mandatory liability insurance where the insurance company compensates for personal injury, death, or property damage caused to victims (excluding the vehicle's occupants and the insured) in road traffic accidents involving the insured motor vehicle, within the liability limits. Commercial Auto Insurance: Commercial motor vehicle insurance is voluntarily purchased by the vehicle owner from commercial insurance companies, in addition to the mandatory traffic insurance required by the state. Commercial auto insurance generally includes vehicle damage insurance, third-party liability insurance, theft insurance, and passenger liability insurance.
I always remind new car owners that the first thing to buy for a new car is compulsory traffic insurance, which is mandatory by the state. Even if you don't drive it on the road, you must have it, otherwise, you may face fines or even have your car impounded if caught. Then, third-party liability insurance is highly recommended with a coverage of at least 1 million. In case you hit someone or a luxury car, you might not be able to afford the compensation and could end up bankrupt. Car damage insurance is also essential as new cars are prone to bumps and scratches, and repairs can be expensive, but insurance can cover it. When buying, don't just look at the price; study the policy's deductible. Some companies offer additional services like towing, which can be very practical. New drivers often take short trips after buying a car, so purchasing a comprehensive package insurance is cost-effective and much better than regretting after an accident.
