Which car insurances are mandatory to purchase?
2 Answers
Car insurance generally requires the purchase of compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, and no-deductible insurance. Below is relevant information about vehicle insurance: 1. No-deductible insurance: Most car insurances set different deductible rates based on accident liability. The insurance company does not compensate for this portion. Vehicle owners can purchase no-deductible insurance to transfer the portion they would otherwise have to pay back to the insurance company, thereby reducing their losses. 2. Compulsory traffic insurance: Fully known as 'Compulsory Traffic Accident Liability Insurance for Motor Vehicles,' driving without this insurance is illegal. In the event of an accident causing losses to a third party, the vehicle owner can receive corresponding compensation.
I've been driving a taxi for over a decade, on the road every day, so I know vehicle insurance inside out. The state mandates compulsory traffic insurance, also known as compulsory traffic liability insurance. Without it, you won't pass the annual inspection and will face fines of over 500 yuan. I think this is just the bare minimum—I strongly recommend adding commercial third-party liability insurance. The compulsory insurance only covers a little over 10,000 yuan, which is nowhere near enough if you're in an accident and injure someone. I experienced a minor accident myself—the compulsory insurance paid out less than 20,000 yuan, but repairing the other party's car cost 30,000 yuan. It wasn’t until I bought third-party insurance that I felt at ease. Other options like vehicle damage insurance or theft insurance can be considered later, but as a driver, compulsory insurance and third-party liability insurance are the absolute must-haves. You can cut corners elsewhere, but never on safety—otherwise, you’re risking harm to both yourself and others.
