Which Four Types of Car Insurance Should You Buy?
2 Answers
Here are the four essential types of car insurance you must purchase: 1. Compulsory Traffic Insurance: This insurance is mandatory—you cannot drive without it. It ensures that the insurance company compensates the victim according to the contract in case of an accident. Note that the victim does not include the policyholder or passengers inside the vehicle. 2. Passenger Liability Insurance: Since passengers are often present in the car, this insurance ensures compensation from the insurance company in case of an accident. 3. Third-Party Liability Insurance: This covers damages involving a third party (other than the car owner and the insurance company). Accidents where the owner hits another driver are unavoidable, and this insurance helps the company bear part of the compensation, reducing the owner's financial burden. 4. No-Deductible Additional Insurance: Normally, insurance companies have a deductible rate where they don’t cover a portion of the claim, requiring the owner to pay out of pocket. With this insurance, the company covers the full compensation.
Having driven for over a decade, I truly believe car insurance is not something to take lightly. Compulsory traffic insurance is mandatory – it's required by law to drive on the road. Third-party liability insurance is particularly crucial, with a recommended coverage starting at 2 million yuan. Nowadays, cities are filled with luxury cars and pedestrians, and you wouldn't want to be stuck unable to pay if an accident happens. Vehicle damage insurance is also a must – it saves a lot on repairs, especially for new cars where even a scratch hurts. Lastly, I recommend getting passenger insurance to protect those in your car, since family and friends often ride with you. These four coverages form a solid foundation, and the no-deductible option is now included in vehicle damage insurance, making it hassle-free. Last year, this exact combination covered me in an accident without costing me a penny.
