What insurances are required when purchasing a new car?
3 Answers
When buying a new car, it is recommended that car owners purchase the following insurances: 1. Compulsory traffic insurance: This is a mandatory insurance required by the state. Without it, the car cannot be driven on the road and will lose its eligibility for annual inspection. 2. Vehicle damage insurance: This is a necessary insurance with the widest coverage for claims. It is truly practical and can help reduce personal losses. 3. Third-party liability insurance: This is a 'supplementary insurance.' Since the compensation amount of compulsory traffic insurance is limited, third-party liability insurance can cover the part that exceeds the compulsory insurance limit. In case of an accident, it ensures more reasonable compensation and more comprehensive reimbursement. 4. No-deductible insurance: This is an additional insurance. In many accident compensations, insurance companies have a deductible rate of 5-20%. Purchasing no-deductible insurance ensures full compensation.
I just bought a new car and initially didn’t know much about insurance, but later researched a lot. The compulsory traffic insurance is mandatory by the state—without it, you can’t get a license plate or drive on the road. It’s the foundation. For commercial insurance, I personally think new cars should have comprehensive coverage. For example, vehicle damage insurance covers repairs if your car is damaged in an accident, and third-party liability insurance protects against compensation for others’ losses—it’s best to start with at least 500,000 for peace of mind. Passenger liability insurance is also important to protect passengers in case of an accident. If you live in a less secure area, theft insurance is worth considering, but you can skip separate glass breakage insurance if you mainly drive in the city. For premiums, I recommend comparing quotes from multiple insurers—online quotes are convenient and save money. Maintaining a safe driving record with no accidents can lower next year’s premiums. As a new driver, buying full coverage may cost a bit more, but it gives greater peace of mind.
I've been driving for many years and have extensive experience with new car insurance. Compulsory traffic insurance is a must, as it's legally required and you'll face fines without it. For commercial insurance, I recommend beginners opt for third-party liability coverage of 1 million or more—with today's high accident compensation costs, lower amounts might not suffice. New cars should definitely get vehicle damage insurance to cover self-inflicted accidents. The no-deductible additional insurance is essential as it waives your out-of-pocket portion. Other coverages depend on needs: theft insurance is only useful in high-risk areas, while passenger liability insurance is advisable if you frequently travel with family. Don't just chase cheap premiums—choose reputable insurers like PICC or Ping An for better service. Safe driving earns discounts, and long claim-free periods bring significant savings. Strategically combining coverages saves money while ensuring worry-free driving.
