What insurances are required when buying a car?
4 Answers
What insurances are required when buying a car? The insurances required when buying a car include: compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, passenger liability insurance, and no-fault insurance. The functions of these insurances are as follows: 1. Compulsory traffic insurance: mainly used to protect the rights and interests of victims in traffic accidents, and is mandatory by the state; 2. Vehicle damage insurance: mainly used to compensate for the loss of the vehicle in traffic accidents; 3. Third-party liability insurance: mainly to protect against personal death and property loss of third parties in traffic accidents; 4. Passenger liability insurance: mainly to protect against personal injury or death of passengers and the driver in the vehicle; 5. No-fault insurance: mainly for the insurance company to bear the compensation costs that the car owner needs to pay in traffic accidents.
When buying a car, insurance is essential. What I care about most is compulsory traffic insurance, which is mandatory by law and must be secured before hitting the road, covering compensation for others' losses in case of an accident. As for commercial insurance, third-party liability insurance is crucial—it's best to opt for high coverage, such as 2 million or more, to ensure affordability in case of major incidents. Vehicle damage insurance is a must, as repairing your own car can be costly. Passenger liability insurance protects both you and your passengers. Additional coverage like theft insurance depends on your location—consider it if you live in a high-crime urban area. No-deductible insurance is a supplementary option that reduces repair costs. New car buyers shouldn’t cut corners—comprehensive coverage can prevent financial ruin from accidents and provide peace of mind for daily driving. In short, thoroughly research policy terms before selecting a provider, comparing prices without compromising on coverage quality.
From my years of car ownership experience, insurance is no trivial matter. Compulsory traffic insurance is fundamental - you can't even get license plates without it. For commercial insurance, I recommend getting sufficient third-party liability coverage; with today's high medical costs, don't skimp on this. Comprehensive coverage can save you money in the long run, covering minor scratches without digging into your pocket. Passenger liability insurance is particularly crucial, especially when traveling with family - safety comes first. Glass coverage and theft protection can be added as needed; I added glass coverage since I often drive mountain roads. Remember to review details when renewing annually to avoid claim difficulties. Good insurance isn't just an expense - it's a safety net for you and others, worth the investment in the long run.
If you're on a tight budget, prioritize essential and high-risk insurance coverage. Compulsory traffic insurance is a mandatory requirement and cannot be skipped. For commercial insurance, at least third-party liability insurance is a must to cover others' losses in case you can't afford to compensate; consider collision insurance if you have a new car or one that's not crash-resistant; passenger liability insurance is necessary to protect yourself in case of accidents; other options like theft insurance and glass insurance can be chosen as needed, and you might skip them for very old cars. The key is not to exceed your budget while covering critical gaps. Consulting professionals or comparing prices online can save you a lot. Basic insurance is usually sufficient, so don't overspend on unnecessary add-ons pushed by salespeople.
