What Insurance Should You Buy for a Used Car?
4 Answers
The following are several recommended types of insurance to purchase: 1. Compulsory Traffic Insurance (CTI): According to China's traffic regulations, vehicles must pay an annual fee for CTI. If caught driving without CTI, you may face penalty points and fines. 2. Vehicle Damage Insurance: After purchasing this insurance, the owner does not need to bear the cost of vehicle repairs, making it crucial for the vehicle itself. This insurance covers accidental traffic incidents within its compensation scope. 3. Third-Party Liability Insurance: In the event of a traffic accident where you are primarily at fault, this insurance becomes extremely important. 4. No-Deductible Special Coverage: This type of insurance specifies an absolute deductible rate. In case of an accident where the owner is fully responsible, the maximum deductible rate is 20%.
When I bought a used Accord last year, I specifically researched insurance options. Compulsory traffic insurance is a must—you can't drive without it. For used cars, it's advisable to add vehicle damage insurance to cover repairs for scratches and rear-end collisions, especially since the previous owner's insurance resets after the transfer. Third-party liability insurance should be at least 2 million, as there are too many expensive cars on the road now to risk underinsuring. Don’t forget to add medical expense coverage for non-insured drugs—it’s just a few dozen bucks but covers out-of-pocket medication costs. Scratch insurance isn’t necessary for older cars, but if it’s an aged vehicle, adding spontaneous combustion insurance is wise. When I first bought the car, I skimped and only got compulsory insurance, then ended up paying over 8,000 out of pocket after scraping a BMW while changing lanes—a decision I deeply regret.
Last week, I helped my cousin look at used cars and realized there's a lot to learn about insurance. Compulsory traffic insurance is legally required and costs around 900 yuan. For commercial insurance, I strongly recommend third-party liability coverage, with a suggested minimum coverage of 3 million yuan, as hitting luxury cars or causing serious injuries can easily cost millions nowadays. Comprehensive insurance offers great value for used cars, especially for nearly-new vehicles under five years old, as it covers repair costs. Seat insurance costs just a few dozen yuan per person for 50,000 yuan coverage, which is much better than paying medical expenses out of pocket. Never skimp on theft insurance, as used cars generally have weaker anti-theft features. Finally, remember to keep an electronic copy of the policy on your phone for easy reference.
As a seasoned driver of a used Alto, let me share some practical advice. Compulsory traffic insurance is a must—no room for negotiation. For commercial insurance, it depends on your budget: if money is tight, opt for third-party liability coverage of 1 million + seat insurance at 10k per seat, totaling less than 1,500. If your budget allows, add vehicle damage and scratch insurance—small dings won’t hurt your wallet when covered. For cars over eight years old, remember to get spontaneous combustion insurance due to higher risks from aging circuits. Insurance companies have their tricks—when renewing, ask them to throw in three free roadside assistance services, which are more useful. A lesson from my own experience: when transferring ownership, demand the original owner refund the commercial insurance—it’s cheaper for you to repurchase it fresh.
