What Types of Insurance Are Required for a New Car?
2 Answers
New cars require compulsory traffic insurance (CTI), third-party liability insurance, etc. Here are the detailed descriptions: Compulsory Traffic Insurance (CTI): CTI, short for 'Compulsory Traffic Accident Liability Insurance for Motor Vehicles,' is China's first mandatory insurance system implemented under national law. According to the 'Regulations on Compulsory Traffic Accident Liability Insurance for Motor Vehicles,' CTI is a compulsory liability insurance where the insurer compensates victims (excluding passengers of the insured vehicle and the policyholder) for personal injury, death, or property damage caused by road traffic accidents involving the insured vehicle, within the liability limits. Third-Party Liability Insurance: This refers to accidental incidents occurring while the insured or their legally permitted driver is using the insured vehicle, resulting in bodily injury, death, or direct property damage to a third party. The insurer is responsible for compensating the economic liability that the insured is legally obligated to bear.
I just bought a new car and researched insurance. Compulsory traffic insurance is mandatory by law, covering compensation if you hit someone. For a new car, it's best to add commercial insurance. For example, vehicle damage insurance can repair your own car—after spending so much on a new car, it's a big loss not to fix a scratch. Third-party liability insurance is recommended with higher coverage, as traffic accidents nowadays often involve compensations of hundreds of thousands. Theft insurance is also practical since new cars are easy targets, and buying it gives peace of mind. The additional no-deductible insurance is good, saving you from paying the deductible part. There are also glass insurance and water damage insurance—worth considering if you often drive in rainy or gravel-heavy areas. Remember, you can negotiate discounts with the 4S store when buying the car or compare online insurers like Ping An and PICC to choose one with fast claims. Overall, don’t skimp on insurance to save money—protecting yourself is most important.
