What insurance is normally required when buying a car?
1 Answers
When buying a car, you normally need to purchase the following types of insurance: 1. Compulsory Traffic Insurance: This is a mandatory insurance required by the state, and you cannot legally drive without it. 2. Third-party Liability Insurance: This insurance covers the economic compensation the car owner must pay to a third party for personal injury or property damage caused by a car accident. 3. Vehicle Damage Insurance: This covers the part that exceeds the limit of the compulsory insurance. It is essential to purchase this insurance and not to set the coverage too low. Generally, it is recommended to have a coverage of at least 300,000 yuan. This insurance is used to cover the loss of your own vehicle. 4. No-deductible Insurance: This special insurance covers the deductible part in auto insurance. Auto insurance clauses usually set a 20% deductible rate. If your vehicle is totaled in an accident and cannot be repaired, purchasing no-deductible insurance ensures that the insurance company will fully compensate for the vehicle loss.