What types of car insurance are generally required?
2 Answers
Car insurance generally includes compulsory traffic liability insurance with vehicle and vessel tax, third-party liability insurance, no-deductible coverage, and vehicle damage insurance. Below is a brief introduction to these four types of car insurance: Compulsory Traffic Liability Insurance with Vehicle and Vessel Tax: This is a mandatory insurance required by the state, unless the vehicle is not driven on public roads. Its coverage includes compensation for losses caused to third parties (excluding the insured vehicle and its passengers), regardless of fault, with a maximum compensation amount of 2,000 yuan. Vehicle Damage Insurance: This is the most basic insurance to protect your own vehicle from damage. For example, accidents such as hitting a utility pole or damage from hailstorms and other natural disasters are covered under vehicle damage insurance. However, losses caused by earthquakes are not covered by insurance companies. Third-Party Liability Insurance: This is the most valuable type of insurance among all vehicle insurance options. If you are fully at fault, such as damaging someone else's car or accidentally hitting a pedestrian, the repair costs for the other vehicle and medical expenses for the injured party are all covered by third-party liability insurance. No-Deductible Coverage: No-deductible coverage, officially known as the 'No-Deductible Rate Special Clause,' is a beneficial type of insurance. In the event of an accident, it transfers the 5% to 20% of the liability that you would otherwise bear to the insurance company.
When it comes to car insurance, I believe safety is the top priority. Compulsory traffic insurance is a must-have, as it's required by the government for road use. Third-party liability insurance is particularly important—it helps cover costs if you accidentally hit another vehicle or person. Vehicle damage insurance is also worth considering, especially for new cars where repair costs from scratches can be significant. Passenger liability insurance protects both you and your passengers, offering peace of mind when traveling with family. The no-deductible insurance is a great complement, ensuring the insurance company covers the full cost in case of an accident, with no out-of-pocket expenses for you. In areas with extreme weather, glass insurance is practical. In short, base your decisions on your budget—it's better to be over-insured than to risk saving a few bucks. Regularly compare quotes from different insurers to find a reliable one.
