What Insurance Policies Should a Vehicle Purchase?
2 Answers
Automobiles need to purchase the following insurance policies: 1. Compulsory Traffic Accident Liability Insurance: This is a mandatory insurance policy that all vehicle owners must purchase. Its only drawback is that the compensation amount is relatively small. 2. Third-Party Liability Insurance: This insurance serves as a supplement to the compulsory insurance. Both provide compensation to third parties, but in the event of an accident, the payout will be determined based on the insured party's degree of responsibility. In many traffic accidents, insurance contracts may include clauses that waive certain deductibles or exemptions for the insurance company. 3. Vehicle Damage Insurance: Vehicle damage insurance covers losses to your own car, but not all damages are covered. For example, standalone damage to glass, exterior rearview mirrors, or tires (including rims) is not covered by the insurance company. Additionally, the insurer does not provide compensation for incidents such as earthquakes, drunk driving, or hit-and-run cases.
As a novice driver, I think buying insurance is quite crucial. Compulsory traffic insurance is the foundation, mandated by the state, and you must have it to protect others in case you can't afford compensation after an accident. Third-party liability insurance is also necessary, with a coverage amount preferably over 500,000, so you won't worry even if you hit a luxury car. Vehicle damage insurance protects your own car, especially recommended for new cars since repair costs can be high. I also suggest adding glass insurance—road debris can easily crack it, and claims are straightforward. Theft insurance depends on your situation; if you live in suburban areas with higher risks, get it, but it might not be necessary in the city. Finally, zero deductible insurance is practical, reducing out-of-pocket expenses during claims. Don’t be swayed by sales pitches—compare prices and services from multiple insurers, align with your driving habits, and prioritize safe driving above all.
