What Insurance Should You Buy for a Financed Car in the Second Year?
2 Answers
For a financed car in the second year, choose the types of insurance to purchase or renew based on your specific situation. Below is a detailed introduction to auto insurance options: 1. Compulsory Traffic Insurance: This is a legally mandated insurance that every car owner must purchase. It provides the most basic claim coverage in the event of a traffic accident. Should an accident occur, compulsory traffic insurance assists the owner in covering difficult-to-afford financial compensation. The compensation amount is determined by the owner's liability proportion in the accident and whether it resulted in personal injury or death. 2. Vehicle Damage Insurance: This insurance covers damage to the insured vehicle caused by an accident while being driven by the policyholder or an authorized driver, with the insurance company providing compensation within reasonable limits. The premium for vehicle damage insurance is significantly influenced by the vehicle's purchase price and the number of seats. 3. Third-Party Liability Insurance: This insurance provides compensation for bodily injury or direct property damage to a third party (excluding the driver and passengers of the insured vehicle) caused by an accident, as stipulated by the insurance company. 4. Comprehensive Theft Insurance: This insurance service offers compensation for losses resulting from the theft or robbery of the entire vehicle. After a theft incident, if the vehicle is not recovered within 60 days of the public security authorities filing the case, the policyholder must provide documents such as the vehicle registration certificate, driving license, and purchase invoice to prove the vehicle's origin and legality to receive the claim payment.
I'm particularly cautious about the insurance setup for my financed car in the second year, needing to both meet lender requirements and save money wisely. First, comprehensive coverage and third-party liability insurance are mandatory - my loan agreement typically enforces these. I opted for 2 million coverage on third-party liability given today's high medical costs, which gives me peace of mind. It's also advisable to add zero deductible coverage to avoid the 15% co-payment. For specific add-ons like water damage insurance, I skipped it since my area rarely experiences heavy rainfall. Compulsory traffic insurance is a fixed annual payment - remember to renew early for discounts. Comparing quotes across providers is crucial; I saved over 800 yuan through online platforms and got three free car washes. Always scrutinize policy details - some complimentary emergency services can be very practical.
