What types of insurance are required for a car?
3 Answers
Car insurance requirements include compulsory traffic insurance, commercial third-party liability insurance, vehicle damage insurance, passenger liability insurance, and deductible waiver insurance. Compulsory traffic insurance is a mandatory liability insurance provided by insurance companies to compensate for personal injuries, fatalities, and property losses caused by road traffic accidents involving the insured vehicle, within the liability limits. Commercial third-party liability insurance covers accidental incidents caused by the insured or their legally permitted drivers while using the insured vehicle, resulting in bodily injury, death, or direct property damage to a third party, for which the insured is legally liable. The insurance company is responsible for compensation. Vehicle damage insurance is a type of commercial auto insurance that compensates for damage to the insured vehicle caused by an accident while the insured or their permitted driver is operating it, within reasonable limits. Passenger liability insurance primarily compensates for injuries or fatalities to passengers in the vehicle caused by a traffic accident. Deductible waiver insurance refers to a deductible waiver clause in auto insurance, which is a type of commercial additional coverage.
I've been driving for many years, and insurance is something you really can't take lightly. Compulsory traffic insurance is mandatory by law, otherwise you'll face fines if caught. But relying on it alone isn't enough—for example, in case of an accident, it only covers others' damages, not your own vehicle. That's why I always get third-party liability insurance with at least 1 million in coverage. A friend of mine once hit a luxury car and nearly went bankrupt from the hefty compensation. Comprehensive insurance is also a must for me—repairs can be expensive, and paying out of pocket hurts. Theft insurance depends on the situation; parking on city streets carries higher risks, and having coverage brings peace of mind. I also opt for zero-deductible insurance—it's more cost-effective without the deductible. Adding glass insurance and passenger insurance provides extra security when traveling with family. Nowadays, buying insurance is convenient—comparing prices online helps find discounts, saving both hassle and money. In short, choose the coverage you need and don't skimp on small savings. Driving safely is what matters most.
I'm the type of budget-conscious car owner who believes in only purchasing essential insurance coverage. Compulsory traffic insurance is legally required, so I renew it on time every year to avoid breaking the law. For commercial insurance, third-party liability coverage is my top priority—it's a small investment that protects against major incidents, with coverage starting at 500,000 yuan to prevent unexpected losses. Comprehensive car insurance is worth it for new cars but unnecessary for older vehicles where repairs aren't worth the premium. Theft insurance depends entirely on parking conditions—for example, it's not needed if your home garage is secure. Passenger liability insurance might occasionally come in handy but is used so infrequently that it can be skipped. I compare premiums from at least three companies to find affordable and reliable options—the savings can cover several tanks of gas or maintenance costs. Remember to regularly review your policy to avoid paying for duplicate or unnecessary coverage. Drive carefully, and with the right insurance coverage, you can plug any gaps worry-free and effortlessly.
