What types of insurance are generally purchased for vehicles?
3 Answers
Vehicles generally require 3 types of insurance. Below are specific introductions for each insurance type: Compulsory Traffic Accident Liability Insurance (CTALI): Full name is "Motor Vehicle Traffic Accident Liability Compulsory Insurance". Driving without CTALI is illegal. Vehicle Damage Insurance: This insurance compensates for vehicle damage, helping to reduce losses caused by collisions or other damages. Third-party Liability Insurance: Provides corresponding compensation when accidental incidents cause losses to third parties. After the auto insurance reform, the coverage of Vehicle Damage Insurance has expanded, now including previously optional add-ons like non-deductible insurance and water damage insurance.
I spent a lot of time thinking about insurance when buying my car. The government mandates compulsory traffic insurance (CTI), which is non-negotiable and needs annual renewal. Vehicle damage insurance is also crucial—if your car gets into an accident or suffers unexpected damage, the insurer covers repair costs, saving you hassle. I recommend opting for higher third-party liability coverage, preferably over 1 million RMB, so you won’t have to worry about footing the bill if you’re liable for others’ losses. Passenger liability insurance is a must if you have kids riding in the back, ensuring coverage for injuries. Glass and scratch coverage are optional; skip them unless you frequently drive on highways. For beginners, the first three policies suffice—save money and add others later as needed. Remember, don’t buy unnecessary coverage for appearances—it’s a waste of money and adds burden. Stick to the most cost-effective safety combo.
Vehicle insurance, I've been driving for over a decade, and experience tells me that compulsory traffic insurance is the most basic, legally required to drive on the road. For car lovers, car damage insurance is like a talisman, ensuring no worries about repair costs after an accident. Third-party liability insurance should start at 1 million in coverage; with today's high accident compensations, it's not worth skimping on this small expense. I also added passenger insurance, as I often drive with family, making the extra coverage worthwhile. Separate glass insurance is practical for drivers who frequently use highways, protecting against damage from small stones. Additionally, comprehensive theft insurance can be skipped in cities with good public security, saving where possible. Don't overlook money-saving tips, such as comparing quotes from several insurers, negotiating discounts at renewal, and keeping the overall budget within 2% of annual income to ensure it doesn't affect daily life.
