What Insurance Policies Are Essential for a New Car?
3 Answers
Here are the must-have insurance policies for a new car: 1. Compulsory Traffic Accident Liability Insurance (CTPL): The first insurance policy to purchase for a car is CTPL, and it is legally required when buying a car. Without it, new drivers cannot license their vehicles, and experienced drivers cannot drive on the road. Driving without CTPL can result in severe penalties. 2. Third-Party Liability Insurance: This insurance covers the compensation for bodily injury or direct property damage caused to others in an accident involving the insured vehicle. Accidents are the last thing anyone wants while driving, as they not only damage your beloved car but also require a significant amount of money to compensate others. 3. Vehicle Damage Insurance: Commonly referred to as comprehensive car insurance, this policy differs from vehicle downtime loss insurance. It covers the insured vehicle against losses caused by natural disasters or accidents within the scope of insurance liability, providing corresponding compensation. However, it does not cover losses caused by earthquakes.
When I first bought my new car, I was also confused about insurance. Compulsory traffic insurance is mandatory by the state—you have to get it, otherwise you can't get your license plate. Vehicle damage insurance covers repair costs, like scratches or rear-end collisions, which is especially useful for new cars. I recommend getting third-party liability coverage of at least 2 million yuan—there are so many luxury cars in cities now, and you can't afford to pay if you hit one. Remember to add the 'no deductible' option, otherwise the insurance company will only cover 80%, which is a big loss. Theft insurance depends on your area—if you often park on the street overnight, you should get it. Glass and scratch insurance aren’t urgent; you can add them after driving for half a year. When picking up the car, you can have the 4S store handle it for you—it’s more convenient.
Remember before my first car hit the road, I bought these three insurances first: Compulsory traffic insurance is the basic coverage with a fixed annual fee of 950 yuan. I adjusted the third-party liability coverage to 3 million yuan - last year when my friend hit a Rolls-Royce, this is what saved him from bankruptcy. Vehicle damage insurance is also essential - just replacing a headlight at the repair shop costs thousands, and scratches on a new car hurt even more. The negligible deductible rider is totally worth its small cost of just dozens yuan, avoiding disputes during claims. Spontaneous combustion insurance is basically unnecessary for new cars, while water damage insurance is a must-add in humid southern regions. Keep your policy documents safe, and just call the insurance company directly to report any accidents.
