What types of insurance are necessary for a family car?
4 Answers
Family cars require four types of insurance: compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, and no-deductible insurance. Compulsory Traffic Insurance: As one of the legally mandated insurances, compulsory traffic insurance requires the insurance company to pay a certain amount to the involved party if any loss is caused to a third party, regardless of fault or the need for compensation. Vehicle Damage Insurance: Vehicle damage insurance is also typically necessary. For everyday issues like scratches, repair costs can be claimed from the insurance company. Especially in accidents where the at-fault party cannot be identified, the insurance company will cover 70% of the costs. Third-Party Liability Insurance: This type of insurance provides the most direct protection. In the event of an accident, whether the third party suffers injury, death, or property loss, the insurance company will compensate according to the corresponding amount. No-Deductible Insurance: In many accidents, insurance companies have a 5-20% deductible rate. However, if the car owner purchases this insurance, all liabilities and amounts will be fully transferred to the insurance company, allowing the owner to receive more compensation.
I just bought my first family car and I'm really excited. As a beginner, I think the most basic is liability insurance, which is required by law, in case I accidentally hit someone or another car, to cover the cost of compensating the other party for their losses and property damage. I also added collision insurance to protect my own car in case of an accident, after all, the investment in a new car is not small. If the budget allows, I would recommend comprehensive insurance to protect the car from theft or natural damage, such as a tree falling on the car. Once my neighbor's car was stolen, fortunately, insurance reduced the loss. Medical payment insurance is also very important, as it can cover medical expenses if a family member is injured in the car. Don't think about saving money by not buying it, safety is the most important thing, and buying a high coverage is more reassuring. In total, buying these four types is enough, don't be fooled by sales into buying too many unnecessary things.
After driving family cars for over 20 years, I've summarized several must-have insurances: Liability insurance is fundamental - covering third-party damages is non-negotiable. Comprehensive insurance is highly practical, protecting against non-collision incidents like fire and theft. Uninsured motorist coverage is essential nowadays with so many uninsured vehicles on the road - it ensures you can still claim if hit by one. Medical payment insurance safeguards passengers' health, especially important for families with elderly or children. Towing coverage can also be convenient at times. Remember to get full coverage rather than opting for bare minimum to save money. I regularly review my insurer's policy updates to stay current. Insurance is about prevention - spending a bit for peace of mind. I recommend beginners start with basics and gradually expand coverage.
For ordinary families like ours, car insurance should be practical and cost-effective. Liability insurance is a must—it's the cheapest yet most essential. Collision coverage depends on your situation; you can skip it if your car is old. I always opt for comprehensive insurance to protect against unexpected events like hail damaging the roof. Medical payment coverage is worth the investment in case you injure yourself. Avoid add-ons like glass or rental car coverage—they’re a waste of money. I regularly compare quotes from multiple providers and save 20% by paying annually. Be strategic and stick to these basics—keep it simple and efficient.
