What Insurance Policies Should Be Purchased for a New Car?
2 Answers
New cars require the following insurance policies: 1. Compulsory Traffic Insurance: Compulsory Traffic Insurance is a type of auto insurance mandated by the state for vehicle owners. While other insurance types are optional, this one is mandatory; without it, the car cannot be driven on the road. 2. Vehicle Damage Insurance: Vehicle Damage Insurance generally covers damages to either the owner's vehicle or the other party's vehicle in an accident. It is commonly purchased by car owners. 3. Third-Party Liability Insurance: Third-Party Liability Insurance provides coverage for injuries to third parties or damages to their property. For example, if a traffic accident involves injuries to a third party, this insurance will cover the compensation.
When I bought my first car, I also struggled with insurance decisions. Now, with more long-distance driving experience, I’ve gained more insight. Compulsory traffic insurance is legally required—you can’t hit the road without it. Vehicle damage insurance is also crucial, covering repairs for your own car, especially for new cars where scratches can be heartbreaking. I recommend third-party liability coverage of at least 2 million yuan, given the number of luxury cars on the road—accidental bumps could lead to terrifying compensation costs. Passenger insurance depends on circumstances; it’s wise to add if you often drive with family. The no-deductible add-on is particularly practical, eliminating out-of-pocket costs after a claim. Glass and scratch insurance are optional but worth considering in chaotic residential areas. Buying insurance is about peace of mind—don’t cut corners and risk future troubles.
