What types of insurance do I need to purchase for my car?
2 Answers
When purchasing a car, you need to buy compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, etc. Below is an introduction to compulsory traffic insurance and the compulsory insurance system: Introduction to Compulsory Traffic Insurance: Compulsory Traffic Insurance, officially known as 'Compulsory Motor Vehicle Traffic Accident Liability Insurance,' is a mandatory liability insurance provided by insurance companies. It compensates for personal injuries, fatalities, and property losses (excluding the driver and passengers of the insured vehicle) caused by road traffic accidents involving the insured vehicle, within the liability limits. Compulsory Insurance System: Compulsory Traffic Insurance is China's first mandatory insurance system implemented under national law. The premiums are standardized nationwide, with rates set by the government. However, the cost varies depending on the vehicle model, primarily influenced by the 'number of seats in the car.'
When buying car insurance, I think beginners should start with the basics. The first must-have is third-party liability insurance, as it covers the other party's losses in case of hitting a person or vehicle, reducing personal financial burden. The second is vehicle damage insurance, which covers repair costs for your own car, especially important for new cars. There's also theft insurance—if you live in an area with poor security, spending a bit more to add this can prevent theft. Additional coverage like glass or scratch insurance depends on actual needs, but don’t overbuy and waste money. Premiums are influenced by driving records, so driving safely can lead to discounts. Don’t forget to compare plans from several insurers and consult a reliable agent to ensure full coverage without overpaying. The key is not to skimp on small costs at the expense of major safety.
