What is the Best Insurance to Buy for a Car?
3 Answers
There is no 'best' car insurance, only the most suitable one. Among them, the compulsory traffic insurance for vehicles, officially known as 'Compulsory Traffic Accident Liability Insurance for Motor Vehicles,' is China's first mandatory insurance system implemented by national law. Compulsory traffic insurance is a type of insurance that the state mandates car owners to purchase. If you drive without this insurance and are caught, you will face penalties. In addition to this, it is advisable to purchase sufficient third-party liability insurance: among all car insurance types, third-party liability is the most important. After all, if your car is damaged, you can choose not to drive it, but compensation for others cannot be waived. When buying car insurance, the priority should be maintaining the ability to compensate for others' losses. Apart from these, other car insurance types can be chosen based on personal needs, such as: Vehicle Damage Insurance: After the car insurance reform, previously additional insurances like engine water damage insurance, standalone glass breakage insurance, no-deductible insurance, spontaneous combustion insurance, and third-party special agreement insurance have all been merged into vehicle damage insurance. If the insured or other permitted drivers cause an accident resulting in damage to the insured vehicle, the insurance company will bear the claim liability within reasonable limits, reducing the financial loss caused by vehicle damage. Seat Insurance and Driving Accident Insurance: Seat insurance follows the car, meaning no matter who sits in your car, compensation is paid per seat in case of an accident. Therefore, regardless of the vehicle type, purchasing car insurance is not only a responsibility to the owner but also to others. In the context of frequent traffic accidents, having car insurance is particularly important and should not be taken lightly. However, car insurance is only a subsequent safeguard; safe driving is fundamental. Non-Medical Insurance Liability Insurance: After purchasing this insurance, even the self-paid medicines during the other party's hospitalization can be reimbursed. Otherwise, the insurance only covers reasonable expenses within the hospitalization scope, and those outside the medical insurance catalog are not covered, leaving the car owner to pay out of pocket.
How to choose car insurance? Safety first is my principle. Compulsory traffic insurance is the legal minimum and must be purchased, covering basic compensation in case of hitting someone. But I think this alone is not enough; third-party liability insurance is even more crucial, especially in big cities with heavy traffic—opting for higher coverage avoids out-of-pocket expenses for others' losses. Vehicle damage insurance is also essential, covering repair costs if your car is damaged in an accident or by natural disasters. Additional coverage like zero deductible is practical, reducing the burden of deductibles. Theft insurance is recommended for cars parked in unsafe areas or with weak anti-theft features. In short, buying insurance is about peace of mind—don’t skimp to save small money and regret it later. Regularly assess risks; for older cars, you can slightly reduce additional coverage, but the core protections should never be cut.
From a cost-saving perspective, buying insurance requires careful calculation. Compulsory traffic insurance has a fixed price of around 1,000 yuan, which is mandatory and cannot be saved. Third-party liability insurance is a cost-effective option; adjust the coverage based on the vehicle's value and usage frequency—choose medium for older cars and higher for new ones. Vehicle damage insurance is essential for new cars, but after three to five years when the value drops, it might be skipped. Additional insurance depends on practicality, such as no-deductible coverage, which costs a few hundred yuan a year but saves thousands in deductibles; or glass insurance, which is worth adding if you frequently drive on highways where flying stones are common. Compare quotes from multiple insurers to find the best deals, and opt for annual payments over monthly ones for better savings. The core of insurance is to cover major risks—avoid over-insuring and wasting money. Develop the habit of documenting accidents to make claims smoother and more cost-effective.
