What types of insurance should be purchased for vehicle renewal in the second year?
2 Answers
For vehicle renewal in the second year, it is mandatory to purchase compulsory traffic insurance (CTPL). Other types of insurance can be selectively purchased by the vehicle owner based on actual needs. Generally, most owners opt for vehicle damage insurance and third-party liability insurance. Below is an introduction to these two types of insurance: 1. Vehicle Damage Insurance: This insurance covers the loss or damage to the insured vehicle caused by traffic accidents while being driven by the insured or other permitted drivers. The insurance company provides economic compensation to the insured in accordance with relevant laws, regulations, and insurance policies. 2. Third-Party Liability Insurance: Also known as "Third-Party Insurance," its specific role is quite similar to compulsory traffic insurance. It covers personal injury, death, or property damage to a third party caused by traffic accidents while the insured vehicle is being driven by the insured or other permitted drivers. The insurance company compensates the third party based on relevant laws, regulations, and insurance policies.
I think when renewing car insurance for the second year, we should focus on practicality and prioritize essential coverage to save money. Compulsory traffic insurance is legally mandated and cannot be skipped—it has fixed coverage amounts mainly for basic liability. For third-party liability insurance, I recommend at least 2 million in coverage since road accidents are common, and protecting against others' losses is crucial. Vehicle damage insurance is also necessary to cover your own car's repair costs, especially when the car is new and valuable. The no-deductible insurance is quite practical too, reducing out-of-pocket expenses—don't underestimate a few hundred yuan, as it can save you a lot in case of an accident. Additional coverage like glass or water damage insurance might not be necessary if I mostly drive in the city with little rain, so skipping them can lower premiums. If no claims were made in the first year, premiums can drop by about 10%, and insurers often offer a no-claims discount at renewal. The key is maintaining good driving habits—fewer coverage types can be more cost-effective. When on a tight budget, prioritize these three core coverages for safety and affordability.
