Which four types of car insurance should I buy?
2 Answers
Detailed introduction of the mandatory car insurance is as follows: 1. The four must-have car insurances. (1) Compulsory Traffic Insurance: This is a mandatory insurance stipulated by Chinese law, so all car owners must purchase it; (2) Third-party Liability Insurance: Mainly covers situations where your car accidentally collides with another vehicle, and the claim can be fully paid by the insurance company; (3) Vehicle Damage Insurance: This refers to a commercial car insurance where the insurer compensates within a reasonable range if the insured vehicle is damaged in an accident; (4) No-deductible Insurance: This is an additional insurance, an extra deduction based on third-party liability insurance. The purpose of this insurance is to transfer the responsibility that should be borne by the car owner to the insurance company. 2. The purpose of buying car insurance. The main purpose of car owners purchasing car insurance is to avoid risks, using a smaller premium to prevent greater economic losses. Buying car insurance can protect your vehicle from losses and also provide timely economic compensation in case you accidentally cause losses to others.
Having driven for over a decade, my deepest realization is that purchasing four types of insurance provides sufficient peace of mind. Compulsory traffic insurance is legally required, offering basic liability coverage to avoid fines; if not purchased, getting caught by the police can result in fines several times higher. For third-party liability insurance, I recommend a coverage amount of at least 500,000 yuan to start with—given the prevalence of luxury cars in cities nowadays, it's quite common for a minor accident to result in compensation claims of hundreds of thousands. Last month, a friend rear-ended a Bentley, and the third-party insurance covered 800,000 yuan, preventing bankruptcy. Vehicle damage insurance protects your own car and is most practical for new drivers, covering all repair costs for incidents like storms or backing into a wall—last year, I saved over 20,000 yuan on car repairs. Passenger liability insurance ensures the safety of passengers inside the car, especially important when traveling with family; by selecting premium combinations and using online comparison tools, you can save around 20%.
