What Insurance Should You Buy for a New Car?
4 Answers
When purchasing a new car, it is recommended that owners buy the following insurance policies: 1. Compulsory Traffic Insurance: Compulsory Traffic Insurance is mandatory as required by national regulations. Without it, the car cannot be driven on the road, and the vehicle will also lose its eligibility for annual inspection. 2. Vehicle Damage Insurance: Vehicle Damage Insurance is the most comprehensive necessary insurance with the widest coverage. This insurance is essential and highly practical, as it helps reduce personal losses. 3. Third-Party Liability Insurance: Third-Party Liability Insurance acts as a "supplementary insurance." Since the compensation amount from Compulsory Traffic Insurance is limited, Third-Party Liability Insurance covers the excess amount that the former cannot compensate. In the event of an accident, it ensures more reasonable compensation and more comprehensive reimbursement. 4. No-Deductible Insurance: This is an additional insurance. In many accident compensations, insurance companies have a 5-20% deductible rate. Purchasing No-Deductible Insurance ensures full compensation.
Every time I help friends pick new car insurance, I emphasize the essential must-have coverages. Compulsory traffic insurance is legally mandatory—you can't skip it. In case of an accident, it helps cover others' medical expenses and such. Then comes the commercial insurance part: vehicle damage insurance is crucial for new cars—repairs can be expensive if your own car gets damaged, and this coverage can reimburse you. For third-party liability insurance, I recommend coverage starting at 500,000 yuan, especially in cities with many luxury cars—if you accidentally hit one, the compensation could bankrupt you. Don’t overlook passenger liability insurance—it protects you and your passengers, especially reassuring when traveling with kids. Adding no-deductible coverage saves hassle, minimizing out-of-pocket costs after an incident. For new cars, also consider theft insurance or glass coverage to guard against minor mishaps. The total budget may be a few thousand yuan, but in the long run, protecting your investment and family is absolutely worth it—don’t cut corners and leave risks just to save a few hundred bucks.
As an experienced car owner, my advice on buying new car insurance is: compulsory traffic insurance must be settled first, otherwise driving without it is illegal and the fines will cost you dearly. Among commercial insurances, third-party liability coverage is the most practical - 300,000 to 500,000 yuan coverage is sufficient to compensate others' losses. Comprehensive coverage (own damage) is worthwhile for new cars since repair costs are expensive and paying out-of-pocket would be stressful. The no-deductible additional coverage is worth the small extra cost to make claims smoother. Other coverages like passenger insurance or theft insurance depend on circumstances - don't force them if budget is tight, just secure the basic protections first. For the first year of a new car, I recommend full coverage as transitional protection, then adjust to more economical options after gaining driving experience. Remember to compare quotes from different companies - choose good service over just low prices.
For beginners buying insurance for a new car, simply start with compulsory traffic insurance, which is mandatory to avoid fines and provide basic coverage. Then add commercial insurance, with the core being vehicle damage insurance and third-party liability insurance. Vehicle damage insurance covers repair costs for your own car, especially useful for new cars prone to scratches and bumps. Third-party liability insurance covers the other party's losses, with a minimum coverage of 300,000 being safer. Other types like passenger insurance or no-deductible coverage are optional; beginners don’t need to rush into getting everything at once—they can add more as they learn. The key is to find a reliable insurance company, sign the contract, and read the terms carefully to avoid pitfalls.
