Which Insurances Must Be Purchased for a New Car?
2 Answers
For a new car, it is mandatory to purchase Compulsory Traffic Accident Liability Insurance, Vehicle Damage Insurance, Third-Party Liability Insurance, and Whole Vehicle Theft and Robbery Insurance. Below are the detailed introductions of these insurances for new cars: 1. Compulsory Traffic Accident Liability Insurance. This insurance is legally required for every car owner in China. It provides the most basic insurance coverage in the event of a traffic accident. If an accident occurs, this insurance helps the owner cover economic compensations that would otherwise be difficult to pay. The compensation amount is determined based on the owner's liability proportion in the accident and whether it caused casualties. 2. Vehicle Damage Insurance. This insurance covers damage to the insured vehicle caused by an accident while being driven by the insured or an authorized driver. The insurance company will provide compensation within reasonable limits. The premium for this insurance is significantly related to the purchase price of the car and the number of seats. 3. Third-Party Liability Insurance. This insurance covers compensation for bodily injuries or direct property damage to a third party (excluding the driver and passengers of the insured vehicle) caused in an accident. The insurance company will compensate according to regulations. 4. Whole Vehicle Theft and Robbery Insurance. This insurance provides compensation for losses due to the entire vehicle being stolen or robbed. After a theft or robbery incident, if the public security authorities file a case and fail to locate the vehicle within 60 days, the owner must provide documents such as the vehicle registration certificate, driving license, and purchase invoice to prove the vehicle's origin and legality to claim the compensation.
I just bought a new car and I'm both excited and a bit nervous, especially when it comes to insurance. The legally required compulsory insurance, also known as compulsory traffic insurance, covers compensation for personal injury or death of the other party in case of an accident. Without it, you could face fines or even have your car impounded, making it impossible to drive legally. I handled it right at the dealership when picking up the car—the process was straightforward, just needing my ID and the vehicle certification. But relying solely on this isn’t enough—a new car is expensive, so I also got commercial insurance like vehicle damage insurance to cover scratches and dents, plus increased coverage for third-party liability to avoid major losses in case of a serious accident. I spent some time studying the policy terms and found some cost-effective package deals, totaling just a few thousand yuan a year for peace of mind on the road. Never skimp on coverage to save money—the risks are too high.