What types of insurance are required for a car?
4 Answers
The mandatory insurance for passenger vehicles is compulsory traffic insurance (CTI), and car owners can also purchase additional insurance based on their actual needs. Below is an introduction to other types of auto insurance: 1. Third-party liability insurance: This covers compensation provided by the insurance company when the insured or their authorized qualified driver causes accidental harm to a third party's life, health, or property during vehicle use, primarily supplementing the limitations of CTI. 2. Vehicle damage insurance: This compensates for losses to the insured vehicle caused by natural disasters (excluding earthquakes) or accidents within the scope of insurance liability, as stipulated in the insurance contract. 3. Passenger liability insurance: Also known as "seat insurance" or "passenger insurance," it covers personal injuries to designated passengers in the insured vehicle caused by the vehicle's own liability, functioning similarly to accidental injury insurance.
Every time I change cars, I have to think about insurance. Actually, there are only three must-haves: compulsory traffic insurance is mandatory by the state, and you can't even get your license plate without it; third-party liability insurance should be purchased with higher coverage—there are so many luxury cars on the road these days. Last time, my neighbor rear-ended a Porsche, and luckily, they had 2 million in coverage; vehicle damage insurance is also essential, as repairing scratches and dents out of pocket is too expensive. For things like glass insurance and spontaneous combustion insurance, I skip them for my old car but add them for the first few years of a new car. Seat insurance is a must if family members frequently ride in the car—200,000 to 300,000 in coverage per person for peace of mind. Scratch insurance is recommended for new drivers but unnecessary for experienced ones. Finally, remember to confirm the no-deductible clause, or you’ll lose money on claims.
When I first bought a car, I didn't understand the types of insurance either, but now I've finally figured it out. The most basic one is compulsory traffic insurance (CTI), which is mandatory for annual vehicle inspections. Among commercial insurances, third-party liability coverage is the most important – nowadays a minimum of 1.5 million is standard, and in big cities you'd better go for 3 million to be safe. Vehicle damage insurance depends on the car's value – recommended for new cars worth over 100,000 yuan, but can be skipped for cars older than five years. Scratch insurance really isn't necessary – it's more cost-effective to save up minor scratches for combined repairs. If you frequently take long trips, make sure to get passenger seat coverage for every seat. Theft insurance depends on your parking situation – it's wise to add it if you park outdoors in older residential areas. Remember to carefully review the coverage details when you get the policy to avoid being sold by salespeople on duplicate coverage.
A veteran driver with over a decade of experience shares insurance tips: Compulsory traffic insurance is a must-have. For commercial insurance, focus on two main types—vehicle damage insurance to cover your own car repairs, and third-party liability insurance to compensate others for losses. Other add-ons are just icing on the cake. Don’t skimp on third-party liability coverage—I maxed mine out at 3 million, which saved me big last year. Vehicle damage insurance already includes theft and glass coverage, so any extra sales pitches are just money traps. Seat-based passenger insurance is the most cost-effective, especially for family trips. Water damage insurance is essential for southern rainy seasons but unnecessary up north. Scratch coverage is the least worthwhile—filing a claim for minor scratches isn’t worth the hassle.
