What Types of Insurance Do You Need to Buy for a Car?
2 Answers
You need to buy four types of insurance for a car: compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, and no-deductible insurance. Below is a detailed analysis of these four types of insurance: Compulsory Traffic Insurance: Compulsory traffic insurance is one of the legally required insurances. If any loss is caused to a third party, regardless of fault or whether compensation is required, the insurance company must pay a certain amount to the affected party. Vehicle Damage Insurance: Vehicle damage insurance is also usually necessary. For example, daily scratches and other issues can be covered by the insurance company for repair costs. Especially after an accident, if the responsible party cannot be found, the insurance company will cover 70% of the costs. Third-Party Liability Insurance: This type of insurance provides the most direct protection. After an accident, whether the third party suffers injuries, fatalities, or other property losses, the insurance company will compensate according to the corresponding amount. No-Deductible Insurance: In many accidents, insurance companies have a 5-20% deductible rate. However, if the car owner purchases this type of insurance, all responsibilities and costs will be transferred to the insurance company, allowing the car owner to receive more compensation.
Having bought car insurance for over a decade, I've gained some insights. Compulsory traffic insurance is mandatory by law—skip it and the police will come knocking. Don't skimp on third-party liability insurance either; higher coverage protects you in case you accidentally hit a luxury car and face crippling repair costs. Vehicle damage insurance is crucial—repairing your own car after a scrape can be expensive, and this coverage saves you big. Theft insurance depends on your area—worth it in high-crime cities to guard against thieves. Passenger liability insurance safeguards your riders at a low premium for peace of mind. I recommend adding the no-deductible rider so you don’t pay out of pocket when filing a claim. Minor coverages like glass insurance are also practical—bundling them keeps premiums reasonable without blowing your budget. Drive carefully, and you’ll rarely need to use the insurance.
