What types of insurance are required for a car?
2 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.
