What Types of Car Insurance Should You Buy?
2 Answers
Car insurance is divided into: compulsory traffic insurance and commercial insurance. Compulsory traffic insurance is mandatory as required by national law. Commercial insurance is optional based on the car owner's preference. Below is a detailed introduction to commercial vehicle insurance: 1. Vehicle Damage Insurance: Covers losses caused by natural disasters and accidents to the vehicle itself, recommended for new drivers. 2. Third-Party Liability Insurance: Covers losses due to personal injury or death of a third party caused by the car owner, a must-have for both your own and others' protection. 3. No-Deductible Insurance: An additional insurance that transfers the responsibility the car owner would otherwise bear to the insurance company, reducing the owner's loss. It's advisable to purchase this if you have both Vehicle Damage Insurance and Third-Party Liability Insurance. 4. Theft and Robbery Insurance: Covers damages caused by vehicle theft, robbery, or snatching, recommended for car owners without a garage. 5. Passenger Liability Insurance: Covers losses suffered by the driver and passengers due to traffic accidents, usually charged per seat, recommended for new drivers or family vehicles. 6. Spontaneous Combustion Insurance: Covers losses due to fires caused by the vehicle's own electrical or wiring issues, suitable for older vehicles. 7. Glass Breakage Insurance: Covers the separate breakage of the windshield or window glass, as glass replacement can be very expensive, recommended for vehicles frequently driven in unsafe areas. 8. Scratch Damage Insurance: Covers losses caused by human, malicious, or accidental scratches to the vehicle body.
When I first bought my car, I was also confused about what insurance to get. Later, I figured it out: compulsory traffic insurance is the basic must-have—it covers some damages if you hit someone, but it's not enough. I recommend focusing on third-party liability insurance, especially with so many luxury cars on the road these days. If you accidentally scrape one, the compensation can be terrifying, so it's best to have coverage of at least 2 million. Vehicle damage insurance is also a must. As a new driver, I often scratch the rims while reversing, and the repair costs hurt—but the insurance premium pays for itself. Seat insurance and additional medical expense coverage outside of basic health insurance are also worth considering. A friend of mine rear-ended someone without this coverage and had to pay over 30,000 out of pocket for passenger medical bills. Don’t forget to check the 'no deductible' option, or you’ll have to shoulder 20% of the costs during a claim. If you have an underground parking spot, adding theft insurance gives extra peace of mind. As for scratch insurance, it depends on personal circumstances—I bought it because there are too many mischievous kids in my neighborhood.
