What Types of Auto Insurance Do You Need to Buy?
4 Answers
Here is a detailed introduction to the types of auto insurance you need to purchase: 1. Basic Insurance: Basic insurance includes Collision Insurance and Third-Party Liability Insurance. Collision Insurance covers compensation for vehicle damage, while Third-Party Liability Insurance provides compensation for personal injuries or fatalities resulting from traffic accidents. 2. Additional Insurance: There are many types of additional insurance, with common ones being Theft Insurance, Spontaneous Combustion Insurance, Water Damage Insurance, Glass Breakage Insurance, Seat Insurance, and No-Deductible Coverage. 3. Compulsory Traffic Insurance: Compulsory Traffic Insurance is a mandatory type of insurance required by the state. Only with this insurance can a vehicle be legally allowed on the road.
When I first bought my car, the most headache-inducing issue was insurance. After researching for a while, I found that the only mandatory car insurance is compulsory traffic insurance, which is required by the state to cover compensation in case of hitting someone. On top of that, I added third-party liability insurance with a higher coverage to mitigate more risks, especially since cities are crowded with people and cars, making accidents more likely. I also recommend getting vehicle damage insurance, especially for new car owners like me who are afraid of scratches—a few hundred yuan a year can save a lot on repair costs. I also considered getting non-deductible insurance to reduce the chance of paying out of pocket. Additionally, passenger liability insurance provides extra protection for passengers. Overall, the coverage becomes quite comprehensive. New drivers shouldn’t skimp on these—safety is the top priority.
After driving for over a decade, I believe car insurance packages should be flexibly adjusted. The most essential are compulsory traffic insurance and third-party liability insurance, with coverage of over 1 million to handle urban collisions. For older cars, comprehensive car damage insurance offers good value for money with low maintenance costs. I’ve grown accustomed to adding theft insurance, especially in areas with unsafe parking—it gives peace of mind against theft. Glass insurance is also worthwhile, as shattered glass from highway debris is common. Don’t forget the additional services insurers provide, like roadside assistance—a small expense can solve big troubles. Overall, buying insurance isn’t a one-time deal; review it annually based on your car’s age and environment to ensure you’re protected from major losses.
As a budget-conscious young person, I have to be very careful with my spending. Compulsory traffic insurance is absolutely non-negotiable – it's required by law, so that money has to be spent. For third-party liability insurance, I recommend going with the basic coverage, insuring for 500,000 to 1 million, which covers most accidents while saving on premiums. You can skip or opt for low coverage on car damage insurance; it's not cost-effective for older, less valuable cars. I didn't get passenger liability insurance either, since I rarely have passengers. I focus on cost-effectiveness, regularly comparing prices and switching companies to find the best deals. A reminder to everyone: more insurance isn't necessarily better. Just pick the most essential few, saving money while still protecting yourself.
