What Insurance Must Be Purchased for a Car to Drive on the Road?
2 Answers
To drive a car on the road, compulsory traffic insurance must be purchased. Other insurance options can be chosen based on actual needs, such as commercial insurance. Here are some considerations when buying insurance: Choosing an Insurance Company: If you are selecting car insurance on your own, the first step is to find a suitable insurance company. Be cautious when choosing small insurance companies, especially those that are not well-known. This is because claims can be difficult to process with such companies, leading to more hassles. Additionally, their limited nationwide service networks can result in significant time wastage for car owners when handling procedures. Selecting Insurance Coverage: When insuring a new car, choosing the right coverage is crucial. The first essential coverage is vehicle damage insurance, which offers great value for money and covers minor scratches and collisions. Next is third-party liability insurance, which serves as an excellent supplement to compulsory traffic insurance. It costs only a little more but provides significantly higher coverage. Additionally, if you don’t have a garage or a fixed parking space, theft insurance is recommended. Other add-on coverages can be selected based on your specific needs. Choosing the Purchase Method: Currently, the most common ways to buy car insurance are through phone-based or online insurance services. Both options are much cheaper than traditional car insurance and offer great convenience, allowing you to purchase insurance without leaving your home. You can also call the official PICC hotline for consultation.
I remember buying my first car five years ago. At that time, the 4S store salesperson told me that the minimum requirement to drive on the road was to purchase compulsory traffic insurance, which is mandatory by the state. Without it, you couldn’t get a license plate or drive legally. Compulsory insurance mainly covers compensation for personal injury and property damage to others in an accident, but the coverage is limited, usually capped at around 200,000 yuan. To avoid having to pay out of pocket in case of hitting an expensive vehicle or being involved in a major accident, I also added commercial third-party liability insurance with a coverage of 1 million yuan. The premium wasn’t much, but it provided protection against major risks. Vehicle damage insurance is also important, as it covers the repair costs of your own car. In short, driving requires compulsory insurance first, and then you can consider other types of insurance based on your budget. Insurance is the fundamental safeguard for driving safety.
