What Insurance Should You Get for Your Car?

[StIsabela]

New car owners can choose insurance based on their needs. Here are detailed recommendations: 1. Beginners with financial flexibility should opt for "full coverage": For novice car owners with good financial conditions, if your vehicle is of high value, you may choose "full coverage" in the first year, including compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, passenger liability insurance, comprehensive theft insurance, scratch insurance, glass breakage insurance, and no-deductible insurance—totaling 8 types. This provides comprehensive protection for your car. 2. Budget-conscious beginners should select basic insurance as needed: If finances are tight, novice drivers can choose appropriate coverage based on their vehicle usage. For vehicles with fixed parking spots used only for commuting, compulsory traffic insurance, vehicle damage insurance, and third-party liability insurance are sufficient. If the vehicle frequently carries family or friends, passenger liability insurance is also recommended. 3. Experienced drivers should choose insurance appropriately: Skilled drivers with lower accident risks generally need only compulsory traffic insurance, vehicle damage insurance, and third-party liability insurance for basic protection. If the car lacks a fixed parking spot and is often used for travel, comprehensive theft insurance and scratch insurance should also be considered.

[FelixFitz]

When purchasing car insurance, I usually start with compulsory traffic insurance, which is mandatory by the state—without it, you can't pass the annual inspection. For commercial insurance, third-party liability insurance is particularly important. Nowadays, hitting a luxury car or injuring someone can result in compensation ranging from hundreds of thousands to millions, so I recommend a coverage of at least 2 million. Car damage insurance is also a must. A couple of years ago, my car got scratched in a parking lot, and the payout came entirely from this coverage. After the recent reforms, it now includes protections like theft insurance and separate glass breakage. I highly recommend the no-deductible insurance—originally, insurers had a deductible rate, but with this add-on, you don’t have to pay out of pocket. If you often travel with family, passenger liability insurance is essential, with a coverage of 30,000 to 50,000 per person being very practical. Although the medical expense liability insurance for non-socialized drugs costs just a few dozen yuan, it covers out-of-pocket medication costs, making it especially useful. With all these coverages combined, the annual cost is only around 3,000 to 4,000 yuan, which is far more cost-effective than paying for accidents yourself.

[JulianaRose]

Having driven for over a decade, my experience is that compulsory traffic insurance is a must, but its coverage is insufficient for all risks. For commercial insurance, I focus on three key points: third-party liability coverage should now be directly set at 3 million, as big cities have many luxury cars with high compensation costs; vehicle damage insurance depends on the car's age—it's essential for the first five years of a new car, but after five years, when the car's value drops, it's optional; the no-deductible clause is a must-add, otherwise, you'll still have to bear 10%-20% of the cost during claims. I choose not to buy passenger insurance because my whole family has accident insurance, which provides more comprehensive coverage. For additional insurance, the medical expenses outside medical insurance liability insurance is worth adding, while others like water damage insurance or spontaneous combustion insurance are not very meaningful unless in special areas. Finally, a reminder: before renewing, consult several insurance companies for quotes, as prices can sometimes differ by several hundred. With this combination, my over-ten-year-old car's annual premium is kept under 2,000.

[NaomiDella]

Auto insurance configuration requires strategy. Compulsory traffic insurance is legally mandatory, but the 120,000 yuan death and disability coverage limit is far from sufficient. The core commercial insurance should include third-party liability insurance (recommended coverage of 2 million yuan) and vehicle damage insurance (which since the 2020 reform includes seven items such as comprehensive theft insurance and glass insurance). Special attention should be paid to the fact that vehicle damage insurance covers natural disasters and accidents, but modified parts are not covered. The no-deductible insurance can avoid the 15%-20% absolute deductible rate and is recommended as an add-on. The extra-medical expense liability insurance covers out-of-catalog medication costs at a low premium. If the parking environment is safe, theft insurance can be skipped, and older vehicles can forgo spontaneous combustion insurance. From an actuarial perspective, third-party liability insurance with 2 million yuan coverage costs about 800 yuan, and vehicle damage insurance is calculated at 10% of the vehicle's value. This combination can cover major risks without over-insuring.

[RyderAnn]

Cost-effective insurance plan: Start with the mandatory compulsory traffic insurance, and only select core items for commercial insurance. Third-party liability insurance with coverage of 1-1.5 million (premium around 500 yuan) covers basic risks of personal injury and property damage. Vehicle damage insurance is optional; it's recommended for new cars within five years, but can be skipped for older vehicles. The no-deductible clause is a must-have to ensure full compensation in claims. If you already have family accident insurance, there's no need to duplicate coverage with passenger liability insurance. Among additional insurances, only the medical expenses beyond medical insurance coverage is recommended, with a premium of just 30 yuan. Always opt for annual insurance terms instead of monthly installment plans to avoid unnecessary handling fees. Claim records affect renewal discounts, so minor scratches are best settled privately. With this setup, my 10-year-old car's annual premium stays under 1500 yuan, offering both savings and basic protection.