Which insurances are mandatory for cars?
2 Answers
Mandatory insurances for cars include: 1. Compulsory Traffic Accident Liability Insurance: This is a legally required insurance in China that every car owner must purchase. It ensures basic insurance compensation in the event of a traffic accident; 2. Third-Party Liability Insurance: This insurance covers compensation for bodily injuries or direct property damage caused to individuals other than the driver and passengers of the insured vehicle in an accident, as stipulated by the insurance company; 3. Vehicle Damage Insurance. Automobile insurance, also known as motor vehicle insurance or simply car insurance, refers to a commercial insurance that covers liability for bodily injuries or property damage caused by natural disasters or accidents involving motor vehicles.
As a newbie who just bought a car, I was initially confused about various insurances, but later learned from experience that the mandatory auto insurance is compulsory traffic insurance, which is legally required—without it, you can’t even register your car for the road. It mainly covers basic compensation for others, such as partial payouts if you hit someone in an accident. However, I strongly recommend adding third-party liability insurance with higher coverage, as driving in the city carries higher risks. In case of an accident involving luxury cars or severe injuries, it can save you from massive expenses. Also, comprehensive car insurance is worthwhile for new cars, covering all repair costs and avoiding out-of-pocket headaches. The premiums aren’t high—just around a thousand yuan a year—and buying them makes driving much more reassuring, especially for first-time drivers like me. In short, compulsory traffic insurance is the starting point, and supplementing it as needed is a good habit.