What Insurance Policies Are Required When Buying a Car?
2 Answers
When buying a car, the following insurance policies are required: 1. Compulsory Traffic Accident Liability Insurance: This is a mandatory insurance policy that must be purchased for any vehicle; 2. Vehicle Damage Insurance: A commonly purchased insurance by car owners, primarily used when the car is damaged; 3. Third-Party Liability Insurance: Also known as third-party insurance, it is used when the car owner is liable in a traffic accident; 4. Spontaneous Combustion Loss Insurance: If the vehicle catches fire due to its own circuit or fuel system failure, the insurance company will be responsible for covering part of the losses.
When I first bought my car, I was completely confused about insurance, but later I did some research. Compulsory traffic insurance is mandatory by the state, and you must have it—otherwise, it's illegal. I recommend getting third-party liability insurance with a higher coverage limit, like over 1 million, because in the city, I’m really afraid I couldn’t afford to compensate if I hit someone or a luxury car. Vehicle damage insurance is also highly recommended, especially for new cars, as repairs for scratches and dents can be quite expensive. Theft insurance depends on parking safety—if your neighborhood has poor security, it’s worth adding. No-deductible insurance is like a small bonus, saving you money on minor accidents. I also added roadside assistance insurance for help with flat tires or towing. I compared several insurance companies and chose one with a good reputation. Putting in a little effort to get the right coverage gives me peace of mind while driving, and I can adjust the coverage annually when renewing.
