What Insurance Should a New Car Have?
1 Answers
New cars require the following insurance policies: 1. Compulsory Traffic Accident Liability Insurance: This is a mandatory insurance in China, and all vehicles must purchase it. In the event of a traffic accident, the insurance company can only compensate the party that was hit, meaning the conditions for compensation are limited. Additionally, without this insurance, the vehicle will lose its eligibility for annual inspection. Therefore, it is essential to have this insurance. 2. No-Deductible Insurance: This is an additional optional insurance for cars. Its purpose is that if you are involved in an accident requiring compensation, the insurance company typically covers 80% of the losses. With No-Deductible Insurance, the remaining 20% that you would normally have to pay is also transferred to the insurance company, meaning you can receive 100% compensation. 3. Vehicle Damage Insurance: Undoubtedly, this is the most comprehensive necessary insurance with the broadest coverage. Whether the car suffers from collisions, scratches, water damage, or other harm, you can receive compensation from the insurance company. The final amount of compensation depends on various factors such as the cause of the incident and the extent of the damage.