What Insurance Policies Are Required for a Financed Car?

[Lance]

Regulations for purchasing a car on finance are as follows: According to Article 3 of the "Notice on Rectifying Irregular Operations of Banking Financial Institutions": Financial institutions must not require customers to accept unreasonable intermediary services or other financial services as a condition for granting loans or providing other forms of financing, thereby charging fees. Legal Perspective: From a legal standpoint, if a car sales company induces consumers to opt for financing and charges them a "financial service fee," this constitutes an illegal act of imposing unreasonable conditions. Compensation Measures: If defrauded, consumers can claim triple compensation. Article 55 of the "Consumer Rights Protection Law" states: "If a business operator provides goods or services with fraudulent intent, it shall, at the request of the consumer, increase compensation for the losses suffered by the consumer. The increased compensation shall be three times the price of the goods purchased or the cost of the services received; if the increased compensation is less than 500 yuan, it shall be 500 yuan. Where other laws provide otherwise, such provisions shall prevail. Insurance Purchase Process for a Financed Car: Insurance for a financed car must include at least compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, vehicle theft insurance, and no-deductible insurance. Compulsory Traffic Insurance: This is a mandatory insurance type required by the state. As long as the borrower buys a car, compulsory traffic insurance is a must. Third-Party Liability Insurance: The compensation limit under compulsory traffic insurance is relatively low. If the borrower purchases third-party liability insurance, the compensation amount in the event of an accident will be significantly higher. Comprehensive Theft Insurance: With this insurance, borrowers do not have to worry about their car being stolen or robbed. Vehicle Damage Insurance: This is one of the most common insurance types for new cars. Any scratches or damage incurred during daily use can be claimed, reducing the borrower's losses. No-Deductible Insurance: As an additional insurance, no-deductible insurance requires the purchase of a primary insurance policy as a prerequisite and cannot be purchased separately. In the event of an accident, the insurance company will cover the deductible amount that the insured would otherwise bear, as calculated based on the primary insurance policy's terms, within the liability limit.