Which Car Insurances Are Mandatory to Purchase?
2 Answers
Mandatory vehicle insurances include third-party liability insurance, vehicle damage insurance, vehicle theft and rescue insurance, vehicle occupant liability insurance, and glass personal damage insurance. Below is relevant information: 1. Third-party liability insurance provides the highest compensation from the insurance company when the vehicle owner hits someone. 2. Vehicle damage insurance compensates for damages caused by collisions, friction, and other accidents involving a new car, based on the proportion stipulated by the insurance company. 3. Purchasing occupant liability insurance offers certain protection for vehicle occupants in the event of a traffic accident. Extended information: Article 21 of the "Supreme Court's Judicial Interpretation on Road Traffic Accidents": In cases where multiple motor vehicles cause damage to a third party in a traffic accident, if the loss exceeds the sum of the compulsory insurance liability limits of each motor vehicle, each insurance company shall bear the compensation liability within their respective liability limits; if the loss does not exceed the sum of the compulsory insurance liability limits of each motor vehicle, and the parties request that the insurance companies bear the compensation liability according to the proportion of their liability limits to the sum of the liability limits, the people's court shall support such a request.
Having driven for over a decade, I deeply understand that car insurance is not an area to cut corners. The must-have coverage is the legally mandated one—in China, it's called compulsory traffic insurance, while abroad it's typically referred to as third-party liability insurance. Without this, if you're involved in an accident, the liabilities can be severe: fines starting from thousands, vehicle impoundment in serious cases, and out-of-pocket medical and repair costs that could bankrupt you. A relative of mine once skimped on full coverage and ended up paying 30,000 yuan after hitting a guardrail—a harsh lesson. My advice: always clarify local regulations when buying a car (applies to both new and used vehicles), especially in high-risk urban areas. Don't risk skipping it to save money—safe driving requires proper protection. Regularly review policy details to avoid expiration mishaps.
