What Types of Insurance Should You Buy for a New Car?
2 Answers
When purchasing insurance for a new car, you should buy compulsory traffic insurance (including vehicle and vessel tax), third-party liability insurance, no-deductible coverage, and vehicle damage insurance. Below is relevant information about auto insurance: 1. Definition: Auto insurance, also known as motor vehicle insurance, is a type of commercial insurance that provides compensation for personal injuries or property damage caused by natural disasters or accidents involving motor vehicles. 2. Categories: Auto insurance can be divided into commercial insurance and compulsory traffic insurance. Commercial insurance is an indefinite value insurance, consisting of basic insurance and additional coverage (which cannot be purchased independently). Compulsory traffic insurance (i.e., compulsory motor vehicle traffic accident liability insurance) falls under the broad category of third-party liability insurance and is a mandatory type of insurance.
As a friend who often drives for trips, I spent a lot of time researching insurance after buying a new car. The most basic is compulsory traffic insurance, which is mandatory by the state and must be paid annually. For a new car, it's advisable to add vehicle damage insurance to cover losses to your own car—otherwise, repairs could cost thousands or even tens of thousands if you get into an accident. Third-party liability insurance is also crucial; I opted for a coverage of 1 million, so I wouldn't have to pay out of pocket if I hit someone. Considering city driving, I added theft insurance and glass insurance—new cars are more likely to be targeted, and road debris can shatter windows. When choosing an insurance company, go for reputable brands with fast claims processing, like Ping An or PICC, which often offer discounts for online purchases. Keep in mind that premiums are higher in the first year for a new car but worth it; after a couple of years, you can adjust the deductible to save money. Also, consider your driving habits and common routes: if you frequently drive on highways, adding water damage insurance is a smart move—safety first. Insurance is key to ensuring a stable life, so don't skimp on it. Investing in proper insurance for your new car can save you a lot of trouble in the long run.
