What insurance policies are needed for a sedan?
2 Answers
Generally, sedans require three types of insurance: compulsory traffic insurance, vehicle damage insurance, and third-party liability insurance. Insurance should be selected based on your actual situation. Compulsory Traffic Insurance: As one of the legally mandated insurances, compulsory traffic insurance requires the insurance company to compensate the affected party a certain amount if any loss is caused to a third party, regardless of fault or the need for compensation. However, in cases of at-fault traffic accidents, the cost may increase by 10%-30% based on the year or frequency of incidents. Vehicle Damage Insurance: Vehicle damage insurance is also typically necessary. For everyday issues like scratches, repair costs can be reimbursed by the insurance company. Especially in accidents where the responsible party cannot be identified, the insurance company will cover 70% of the costs. However, compensation under vehicle damage insurance is calculated based on the vehicle's usage time and depreciation, with an annual depreciation rate typically set at 7.2%. Third-Party Liability Insurance: Fully known as third-party liability insurance, this is a type of liability insurance. It covers the financial compensation that the insured must legally or conventionally bear due to their own faults or negligence causing personal injury or property damage to a third party, which is then assumed by the insurer.
As a seasoned driver with over a decade of experience, I must say car insurance is something you can't take lightly. In China, compulsory traffic insurance is mandatory—it's like the basic ticket to drive, covering others' injuries or property damage. But that alone isn't enough. I recommend adding some core commercial insurance options, such as vehicle damage insurance, which can save you a fortune in repairs if your car gets scratched or hits a tree. There's also third-party liability insurance to reduce payouts if others' property or people are harmed. Don’t forget the no-deductible insurance—it helps cover additional costs. For new or expensive cars, it’s wise to get comprehensive theft coverage, especially in cities where vehicles are more likely to be targeted. Insurance is a small investment, just a few thousand a year, but if an accident happens, it can save you months of headaches. Balancing safety, risk, and budget, this combination should suffice.
