What types of insurance should I buy for a sedan?
5 Answers
For a sedan, you can purchase the following four types of insurance: 1. Compulsory Traffic Insurance (CTI): Provides compensation for injuries or property damage caused to the other party. 2. Third-Party Liability Insurance: Compensates the other party within the coverage limit, but not exceeding 30% of the liability limit. 3. Vehicle Damage Insurance: Covers damage to the vehicle caused by an insured accident, with the insurance company paying within a reasonable range. 4. No-Deductible Insurance: An additional insurance type that transfers the portion you should bear to the insurance company. Regarding comprehensive insurance: Many 4S shops or insurance company staff will tell car owners that purchasing "comprehensive insurance" provides better protection. However, the so-called "comprehensive insurance" does not include all car insurance types but mainly refers to Compulsory Traffic Insurance, Vehicle Damage Insurance, Third-Party Liability Insurance, Passenger Liability Insurance, No-Deductible Insurance, Theft Insurance, Scratch Insurance, Spontaneous Combustion Insurance, and Glass Insurance.
A word of advice for friends who just bought a car: I was also confused when I first got insurance. Nowadays, it's essential to buy both vehicle damage insurance and third-party liability insurance. Vehicle damage covers your own car, while third-party liability compensates for others' losses. Compulsory traffic insurance is legally mandatory but offers limited coverage. I recommend maxing out the third-party liability coverage to 2 million yuan – you really can't afford to hit a luxury car these days. Seat insurance only costs a few dozen yuan and gives peace of mind when carrying passengers. Oh, and remember to add the non-medical insurance coverage rider – it covers imported medications in case of accidents. Last year, when an electric bike hit my car door, these insurance policies saved me from paying out of pocket.
A veteran driver with 15 years of experience tells you: buy insurance wisely, not excessively. Compulsory traffic insurance is like underwear - absolutely essential. Third-party liability coverage should start at 2 million to guard against accidents. Whether to purchase vehicle damage insurance depends on circumstances; you can skip it for cars over five years old. The key is to add passenger accident insurance - it protects your whole family. Glass coverage and scratch insurance are pure IQ taxes, unless you drive a million-dollar luxury car. My colleague's brand-new Lexus got scratched by a tree branch, and the vehicle damage insurance covered it - no need for separate scratch coverage. Remember: insurers fear it most when you add non-deductible coverage - this small extra can increase your claim payout by 30%.
Experienced mom with two kids sharing car insurance tips: I insist on just four essentials - compulsory traffic insurance, third-party liability coverage of 3 million (extra cautious when driving with kids), vehicle damage insurance (no heartache over new car scratches), and 500,000 per person for seat insurance. Particularly important to add external power grid failure coverage - now driving an electric car to kids' classes, even charging pile fires are covered. Don't fall for sales pitches on comprehensive theft insurance, with cameras everywhere car thieves are practically extinct. Last month when I scraped a pillar in the mall parking lot with kids in the car, the claim was settled in just three days.
Budget-savvy workers should buy like this: Compulsory traffic insurance is a must, and third-party liability coverage of 2 million is sufficient. For my old car, I skipped the vehicle damage insurance but added the 'Cannot Find Third Party' special clause for just 30 yuan. Highly recommend the Medical Expenses Beyond Medical Insurance Liability Insurance—it solves big problems for just tens of yuan. For seat insurance, choose 200,000 coverage per seat, which is three times more cost-effective than buying separate accident insurance. Don’t be fooled into buying engine water damage insurance unless you live in a hilly city like Chongqing. Last time my car was flooded, the vehicle damage insurance already covered this compensation. Remember, renewing your insurance 30 days in advance saves the most money.
