What types of insurance are generally purchased for vehicles?
2 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.
