Which Car Insurances Are Necessary to Purchase?
3 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: Compulsory Traffic Insurance: As one of the insurances mandated by legal provisions, Compulsory Traffic Insurance requires the insurance company to compensate the involved party a certain amount, regardless of whether there is liability or the need for compensation, as long as a third party suffers a loss. Without purchasing this insurance, the vehicle is considered illegally on the road. In terms of premiums, Compulsory Traffic Insurance implements a unified national standard, with the main influencing factor being the number of car seats. Vehicle Damage Insurance: Vehicle Damage Insurance is also usually necessary to purchase. Issues like daily scratches and repairs can be reimbursed by the insurance company, especially after an accident. Although this insurance is not mandatory by the state, it is highly recommended for car owners because it is the most frequently used car insurance. If a traffic accident occurs, the insurance company will compensate within a reasonable range. Third-party Liability Insurance: This insurance mainly compensates for the other party's vehicle loss, and there are multiple coverage amounts to choose from when purchasing. Car owners can decide based on their financial situation and local traffic conditions. No-deductible Liability Insurance: This insurance is mainly combined with Vehicle Damage Insurance and Third-party Liability Insurance. If an accident occurs during the use of the car, the insurance company typically does not compensate for 5%-20% of the coverage amount under normal circumstances.
When buying car insurance, as a beginner, I must remind you of a few key points. Compulsory traffic insurance is a must—it's the basic insurance required by law to cover third-party losses in accidents. No kidding, driving without it may result in fines and demerit points, so don't take chances. Third-party liability insurance is also highly recommended, and the coverage amount shouldn’t be too low—start with at least one million, as cars and medical costs are expensive these days, and you don’t want to be unable to afford compensation if you hit someone or a luxury car. For vehicle damage insurance, consider your car’s value—new cars should definitely have it, as repairs are costly; older cars can be assessed case by case. Also, consider seat insurance to protect yourself and passengers—it’s good for accident coverage. Balance your driving habits and budget carefully—don’t skimp on small expenses only to face big losses. Regularly comparing insurance company prices can save you money.
Having driven for over a decade, I've had plenty of experience with car insurance. Compulsory traffic insurance is a must—it covers others' losses. Third-party liability coverage should be sufficient, ideally over two million, given the exorbitant costs of medical bills and luxury car repairs. Comprehensive coverage depends on your car's condition—new cars should have it without hesitation, while older cars can skip it to save money. Additional options like no-deductible coverage are worth adding, as they're affordable and provide peace of mind. The key is to buy based on driving frequency and environment. For daily city commutes with frequent traffic jams, adding scratch coverage protects against minor scrapes. Don’t fall for sales pitches—just choose what’s necessary.
