What insurances are essential when buying a car?

1 Answers
LoganDella
07/29/25 6:35pm
When purchasing a car, it is essential to buy four types of auto insurance: compulsory traffic insurance, third-party liability insurance, no-deductible insurance, and vehicle damage insurance. The only mandatory insurance required when buying a car is compulsory traffic insurance. Compulsory traffic insurance is a mandatory insurance in China, and all vehicles must purchase this type of insurance. In the event of a traffic accident, the insurance company can only compensate the party that was hit, meaning the conditions for compensation are relatively limited. Additionally, if compulsory traffic insurance is not purchased, the vehicle will lose its eligibility for annual inspection.
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