What Types of Insurance Should You Purchase for a New Car?
2 Answers
Mandatory insurance for vehicles includes compulsory traffic insurance, vehicle damage insurance, and third-party liability insurance. Below are detailed explanations of these insurance types: Compulsory Traffic Insurance: The full name of compulsory traffic insurance is "Compulsory Traffic Accident Liability Insurance for Motor Vehicles," which is China's first mandatory insurance system implemented under national legal regulations. Its premium follows a nationally unified standard set by the government. Vehicle Damage Insurance and Third-Party Liability Insurance: Vehicle damage insurance is a type of commercial auto insurance that compensates the insured or an authorized driver for damages to the insured vehicle caused by an accident within reasonable limits. Both vehicle damage insurance and third-party liability insurance are fundamental types of vehicle insurance, primarily covering the losses of the insured vehicle and the damages caused to third parties by the insured vehicle during use.
When I first bought a new car, I was most concerned about insurance. The compulsory traffic insurance is legally required; otherwise, you can't drive on the road. Next is third-party liability insurance, where a higher coverage is better, such as over 1 million, because in the city, if you accidentally hit a luxury car, the compensation could be unaffordable. I also opted for vehicle damage insurance—repair costs for new cars after scratches can be expensive, so it covers your own vehicle's damage. Theft insurance depends on your needs; add it if your residential area isn't very secure. It's advisable to include the no-deductible special clause, so you don’t have to pay out of pocket for minor accidents. Passenger liability insurance is also important if you frequently carry family or friends. Don’t forget to compare quotes from different insurers, as package deals might offer discounts. Overall, don’t skimp on new car insurance—comprehensive coverage brings peace of mind.
