What Insurance Should a New Car Have?
2 Answers
New cars should primarily have the following types of insurance: 1. Compulsory Traffic Accident Liability Insurance. This is a mandatory insurance required by Chinese law for every car owner. It ensures basic insurance coverage in the event of a traffic accident. Failure to purchase this insurance may result in the vehicle being impounded by traffic authorities and a fine of twice the premium amount. 2. Vehicle Damage Insurance. This covers damage to the insured vehicle caused by accidents while being driven by the policyholder or an authorized driver, with the insurance company providing compensation within reasonable limits. 3. Third-Party Liability Insurance. This covers compensation for bodily injuries or property damage to individuals other than the driver and passengers of the insured vehicle in an accident. For example, if you accidentally hit an electric bike, the insurance company will cover the damages to the bike and any injuries to its rider.
When buying a new car, it's important to get comprehensive insurance. I did my homework: compulsory traffic insurance is mandatory and can't be skipped. For commercial insurance, vehicle damage insurance is a must—repairs for new cars are expensive, and even a small scratch can be costly. I opted for third-party liability insurance with a coverage of three million, so I wouldn't have to worry about hitting a luxury car in the city. Adding no-deductible insurance saves hassle in case of an accident. Since new cars are more prone to theft, considering theft insurance provides extra peace of mind. For minor coverage like scratch or glass insurance, choose based on your parking situation—don’t be talked into getting everything. Total premiums come to around 4,000 yuan a year, which is worth it for peace of mind. The key with new car insurance is not to miss the essentials—better coverage means more safety.
