What Insurance Policies Are Essential for a New Car?

[DiCaleb]

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.

[EliLynn]

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.

[MiaLynn]

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.

[AmyLee]

New car owners should purchase insurance based on actual needs. Compulsory traffic insurance is mandatory, as vehicle inspections require it. Third-party liability insurance should have at least 1.5 million coverage, given the high medical costs nowadays. Vehicle damage insurance covers your own repair costs, and new car parts are expensive. Remember to check the no-deductible additional insurance to avoid high out-of-pocket expenses in case of a claim. If you frequently drive on highways, add glass insurance, as windshield cracks from flying stones are common. Passenger insurance for five seats costs just a few dozen yuan, providing peace of mind when traveling with family. Other additional insurance options can be chosen based on urban environment factors.

[Zachary]

Last week, I researched insurance while accompanying my cousin to pick up his new car. The legally mandatory compulsory traffic insurance is the baseline and cannot be skipped. Among commercial insurances, third-party liability insurance is the most crucial, with a minimum coverage of 2 million yuan – our neighborhood alone has seen several incidents of reversing into walls. Collision insurance is especially useful for new car owners, as a single panel repaint at a 4S dealership can cost over a thousand yuan. The no-deductible option is very practical, making the coverage more comprehensive. Water damage insurance is essential for the rainy season in the south, as engine water damage repairs are extremely expensive. Scratch insurance isn’t very meaningful in the first year, as minor scratches can be handled with the touch-up vouchers provided by the 4S dealership.

[LailaAnn]

For new car insurance, I adhere to three principles: Mandatory traffic insurance is a must, with a nationwide uniform premium of 950. Third-party liability coverage should be sufficient at 3 million, as I once saw a Tesla rear-end repair cost over 100,000. Comprehensive coverage depends on the car's value; it's advisable for models above 200,000. The no-deductible add-on is cost-effective, reducing out-of-pocket expenses. Passenger liability insurance by seat offers peace of mind during holidays when the car is full. Additional coverage should consider city-specific needs, like a designated repair shop add-on in northern winters for guaranteed 4S shop repairs. Adjusting the policy in the second year based on driving habits can save money.