What types of insurance are generally purchased for a car?
3 Answers
There are four types of car insurance that can handle most problems in an accident: 1. Compulsory Traffic Insurance: Provides compensation within the liability limit for injuries or property damage caused to the other party. 2. Third-party Liability Insurance: Offers compensation to the other party's victims within the coverage limit, but not exceeding 30% of the liability limit. 3. Vehicle Damage Insurance: Covers damage to the vehicle caused by an insured accident, with the insurance company providing reasonable compensation. 4. No-deductible Insurance: An additional insurance type that transfers the 5% to 20% portion that should be borne by the policyholder to the insurance company.
As a new driver who just got my license, I was quite confused about car insurance at first. Later I learned that compulsory traffic insurance is mandatory by the state, covering compensation if you injure someone in an accident. There's also third-party liability insurance - if you accidentally damage someone else's car or property, it can pay a substantial amount. It's wise to choose higher coverage to avoid regrets. Vehicle damage insurance is crucial too, covering repairs or total loss of your own car, especially important for new cars with expensive repairs. Theft insurance is very practical in big cities - a friend had their car stolen and suffered huge losses without it. I recommend adding no-deductible insurance to avoid paying out of pocket. New drivers shouldn't skimp - getting full coverage is safest. Though it costs about a thousand yuan annually, it's worth it. Safety comes first!
After driving for ten years, I've learned that insurance needs careful selection. Third-party liability insurance is the core, with coverage of over 500,000 yuan, making it easy to claim in case of major incidents. Vehicle damage insurance is essential—repair costs for your own car can be expensive, and it comes in handy for minor bumps. The no-deductible insurance is a great helper, avoiding high out-of-pocket expenses and saving both worry and money. There’s also waterlogging insurance for flood protection during the rainy season, and passenger liability insurance for compensation in case of passenger injuries. I recommend choosing large insurance companies for reliable service and quick claims. I often drive long distances, and a full coverage package costs around 1,500 yuan annually—worth it, so don’t lose big for small savings.
