What Insurance Should You Buy When Paying in Full for a Car?
2 Answers
When paying in full for a car, the following types of insurance are necessary: 1. Compulsory Traffic Accident Liability Insurance (CTPL): CTPL is a mandatory insurance in China, and all vehicles must purchase this coverage. In the event of a traffic accident, the insurance company can only compensate the party that was hit, meaning the conditions for compensation are limited. Additionally, without CTPL, the vehicle will lose its eligibility for annual inspection. Therefore, CTPL is essential. 2. Third-Party Liability Insurance: Most car owners opt for both CTPL and third-party liability insurance. Since the compensation amount from CTPL is limited, third-party liability insurance covers the excess amount that CTPL cannot compensate. Even in the event of an accident, you can receive a more reasonable amount of compensation. 3. No-Deductible Insurance: Unlike the first two types of insurance, which are basic and independent, no-deductible insurance is an additional coverage for cars. Its role is that if you incur a claim of 1,000 yuan, the insurance company would normally cover 80% (800 yuan) of the loss. With no-deductible insurance, the remaining 20% you would have to pay is also transferred to the insurance company, meaning you receive 100% compensation. Hence, no-deductible insurance is worth purchasing. 4. Vehicle Damage Insurance: Vehicle damage insurance undoubtedly offers the broadest coverage among necessary insurances. Whether your car suffers from collisions, scratches, water damage, or other harm, you can receive compensation from the insurance company. The final compensation amount depends on various factors such as the cause of the incident and the extent of the damage.
I just bought a car with my own money. Insurance is something to consider seriously, as protecting both the car and myself is crucial. At the very least, compulsory traffic insurance is a must—it's legally required, and you'll be checked by traffic police if you don't have it. Additionally, third-party liability insurance is highly recommended. If you accidentally hit someone or something, it covers the financial losses, which is especially important in crowded cities where hitting a luxury car could be financially devastating. Comprehensive insurance for the car itself depends on the situation. If it's a new or expensive car, I suggest adding this to cover repair costs; for older cars, you might save some money. Seat insurance is also a good option, especially when carrying family or friends, as it protects passengers. No-deductible insurance is worth adding too, as it eliminates out-of-pocket expenses during claims. Overall recommendation: compulsory insurance plus third-party liability is the bare minimum, but if the budget allows, a full coverage package offers greater peace of mind.
