Which Car Insurances Are Necessary to Purchase?
2 Answers
Compulsory traffic insurance, third-party liability insurance, vehicle damage insurance, and no-deductible insurance are necessary to purchase. Other insurances such as theft insurance, spontaneous combustion insurance, and passenger liability insurance can be purchased according to individual needs. Extended information is as follows: 1. Compulsory Traffic Insurance: As one of the insurances required by law, compulsory traffic insurance covers any losses caused to a third party, regardless of liability or the need for compensation. The insurance company must compensate the involved party a certain amount. Without this insurance, the vehicle is considered illegally on the road. In terms of premiums, compulsory traffic insurance follows a nationwide unified pricing standard, primarily influenced by the 'number of car seats.' 2. Vehicle Damage Insurance: Vehicle damage insurance is also typically necessary to purchase. It covers daily issues like scratches and repair costs, which can be reimbursed by the insurance company, especially after an accident. Although not mandatory by the state, this insurance is highly recommended for car owners because it is the most frequently used car insurance. In the event of a traffic accident, the insurance company will compensate within a reasonable range. 3. Third-Party Liability Insurance: This insurance mainly compensates for the other party's vehicle loss. There are multiple coverage amounts to choose from when purchasing. Car owners can decide based on their financial situation and local traffic conditions. 4. No-Deductible Liability Insurance: This insurance is primarily combined with vehicle damage insurance and third-party liability insurance. If an accident occurs during the car owner's use of the vehicle, the insurance company typically does not compensate 5%-20% of the coverage amount.
To be honest, having driven for thirty years, I sincerely recommend buying these three types: Compulsory Traffic Insurance is the most basic, legally required—you can't hit the road without it. Third-Party Liability Insurance is absolutely crucial; if you accidentally hit someone or damage property, a high-coverage policy can prevent financial ruin. Vehicle Damage Insurance is also very practical, especially for new cars or frequent highway driving, as it covers repair costs. Don’t skimp on Passenger Liability Insurance—it protects you and your passengers, and the premium isn’t expensive. Others like Scratch Insurance or Spontaneous Combustion Insurance depend on personal circumstances; older cars might consider spontaneous combustion coverage, while new cars parked outdoors often should add scratch protection. In short, insurance is about buying peace of mind—don’t let small issues turn into big problems.
