What Insurances Are Mandatory for New Cars?
2 Answers
New cars must be insured with compulsory traffic insurance, as it is a mandatory requirement for all vehicles in China. Without it, the car cannot be driven on the road and will lose its eligibility for annual inspection. Common car insurance types include compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, passenger liability insurance, comprehensive theft insurance, glass breakage insurance, spontaneous combustion loss insurance, body scratch insurance, and no-deductible insurance. Besides compulsory traffic insurance, it is generally recommended to purchase the following types of car insurance: 1. Vehicle Damage Insurance. In the event of a traffic accident, the insurance company will provide compensation within a reasonable range. 2. Third-Party Liability Insurance. If a motor vehicle is involved in a traffic accident causing personal injury or death and direct property damage to a third party, the insurance company will cover the economic compensation within the legally required scope. 3. No-Deductible Insurance. No-deductible insurance is an add-on to vehicle damage or third-party liability insurance. Purchasing this insurance allows the car owner to avoid bearing the responsibility for accidents themselves and ensures 100% compensation.
I have quite some experience with buying insurance for new cars, having driven for many years. First, compulsory traffic insurance is a legal requirement and must be renewed annually to protect pedestrians. Third-party liability insurance is also crucial, with coverage starting at least at 1 million yuan, which can save you a lot of money in case you hit someone else's car or property. Although vehicle damage insurance isn't mandatory, it's wise to add it for a new car to protect your own vehicle without regrets. Additionally, don't overlook the non-deductible insurance, which saves you money and hassle by waiving the deductible when making a claim. When purchasing insurance, compare prices and services from several insurance companies and don't blindly follow the sales pitches at the dealership. Driving safely in daily life can help avoid trouble, but having the right insurance really lets you sleep soundly at night.
