What Insurance Should Be Purchased for a New Car?

[DeMariana]

When buying a new car, it is recommended that owners purchase compulsory traffic insurance, vehicle damage insurance, and third-party liability insurance. Below are the introductions to the relevant insurances: Compulsory Traffic Insurance: Compulsory traffic insurance is a mandatory insurance required by the state. Without it, the car cannot be driven on the road, and the vehicle will also lose its eligibility for annual inspection. Vehicle Damage Insurance: Vehicle damage insurance is the most comprehensive necessary insurance with the widest coverage. This insurance is essential and truly practical, as purchasing it can reduce personal losses. Third-Party Liability Insurance: Third-party liability insurance is a 'supplementary insurance.' Since the compensation amount of compulsory traffic insurance is limited, third-party liability insurance can cover the portion that exceeds the compulsory insurance's limit. In the event of an accident, it allows for more reasonable compensation amounts and more comprehensive reimbursement.