What types of car insurance can be purchased?
3 Answers
Car insurance must include compulsory traffic insurance, third-party liability insurance, vehicle damage insurance, theft insurance, passenger liability insurance, scratch insurance, spontaneous combustion insurance, and water damage insurance. Compulsory traffic insurance is a mandatory insurance in China and is a type of coverage that all vehicles must purchase. Relevant information about compulsory traffic insurance is as follows: Introduction: The full name of compulsory traffic insurance is Motor Vehicle Traffic Accident Liability Compulsory Insurance. It is a mandatory liability insurance where the insurance company compensates for personal injury, death, and property damage (excluding the vehicle's occupants and the insured) caused by the insured motor vehicle in a road traffic accident within the liability limits. Necessity: Compulsory traffic insurance ensures compensation for victims of motor vehicle traffic accidents and promotes road traffic safety. It provides timely and basic protection for traffic accident victims.
When I first bought my car, I was also struggling with what car insurance to get, but the sales guy cleared it up for me. The compulsory traffic insurance required by the state is a must-have as it provides basic coverage. Among the commercial insurance options, it's recommended to prioritize third-party liability insurance—with so many luxury cars on the road these days, I went straight for 2 million in coverage. You should also get vehicle damage insurance to cover repairs for your own car in case of scratches or dents. Passenger liability insurance is another good one to have, especially when driving with family or friends for peace of mind. I skipped theft insurance but added separate glass breakage coverage since highway driving can lead to chips from flying stones. For new cars, it's advisable to get comprehensive coverage, while older cars can skip some of the options.
I've been driving for ten years, and there's really no need to buy a full set of car insurance. Compulsory traffic insurance is a must-have with no alternative. For commercial insurance, I only buy two types: third-party liability insurance with a coverage of 2 million to handle the risk of hitting luxury cars, and vehicle damage insurance to cover the repair costs of my own car. As for seat insurance, I only bought it for the driver's seat since I'm usually the only one driving. Fancy insurances like scratch insurance and spontaneous combustion insurance are unnecessary—practicality is what matters most. Remember to get sufficient coverage for third-party liability insurance; nowadays, the average coverage starts at 1.5 million.
