What Insurance Should a New Car Have?

[MacDaniela]

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.

[GabriellaDella]

Having driven for several years, I fully understand the importance of insurance for new cars. First, compulsory traffic insurance is mandatory, as required by the state—without it, you can't even get a license plate, and you may face fines if an accident occurs on the road. Given the high value of a new car, I recommend comprehensive insurance to cover repair costs in case of scratches or collisions. Third-party liability insurance is also crucial, as it compensates for damages to others, and a coverage of at least 1 million yuan provides peace of mind. The no-deductible insurance is highly practical, eliminating the out-of-pocket portion and reducing headaches during claims. New cars are particularly vulnerable to theft, so adding theft insurance is wise. If you live in an area with heavy rain or snow, water damage insurance is worth considering. If you have a car loan, banks typically require full coverage, so don’t overlook it. In short, comprehensive insurance for a new car ensures worry-free driving, especially in the first two years when the car retains higher value.

[VonRuth]

When I first bought my new car, I carefully calculated how to save money on insurance without compromising coverage. Compulsory insurance is unavoidable, so I just got it directly. Among commercial insurances, third-party liability insurance is the most essential, and a moderate coverage amount like 500,000 to 1 million is sufficient. Comprehensive insurance is worth it for new cars, but experienced drivers who park safely can reduce costs a bit. Without the no-deductible option, paying 20% out of pocket in case of an accident can be painful. Theft insurance depends on the safety of the area—it’s best to add it in busy urban areas. Others like glass or scratch insurance can be skipped, as minor issues can be paid out of pocket. I usually compare discounts from different insurance companies and negotiate for a few hundred in savings at renewal. New car premiums are initially expensive, so just choose the core coverage based on driving habits.

[VanLyla]

Don't rush to hit the road with your new car; get the insurance sorted first. Compulsory traffic insurance is a must, or you won't get your license plate and it's illegal. Keep it simple: get vehicle damage insurance to cover your own car's damages. Third-party liability insurance covers others' losses—higher coverage is safer. Waiver of deductible reduces out-of-pocket costs, very practical. New cars are easy targets, so theft insurance is good. Other insurances like glass or scratch coverage are optional but not essential. Driving carefully is key, but don't skip these insurances to avoid panic in case of accidents. Buy the insurance policy before getting your license plate; you can save money by choosing a basic package.