Which types of car insurance can be purchased?
2 Answers
Car insurance must include compulsory traffic insurance, third-party liability insurance, vehicle damage insurance, theft insurance, passenger liability insurance, scratch insurance, spontaneous combustion insurance, and water damage insurance. Compulsory traffic insurance is mandatory in China and must be purchased for all vehicles. Relevant information about compulsory traffic insurance is as follows: 1. Introduction: The full name of compulsory traffic insurance is "Compulsory Traffic Accident Liability Insurance for Motor Vehicles." It is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, and property losses (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured vehicle within the liability limits. 2. Necessity: Compulsory traffic insurance ensures compensation for victims of motor vehicle road traffic accidents and promotes road traffic safety. It provides timely and basic protection for victims of traffic accidents.
When it comes to choosing car insurance, I think we should start with mandatory and optional coverage. First, compulsory traffic insurance is legally required—it covers third-party bodily injury and property damage, providing basic liability protection in case of accidents. For commercial insurance, the most essential ones are third-party liability insurance and vehicle damage insurance. The former covers high compensation costs for others (handling luxury car collisions in urban areas), while the latter covers repairs for your own car without financial stress. Passenger liability insurance is also worth adding to protect occupants. Many optional coverages exist, like theft insurance against car theft, standalone glass breakage insurance for shattered windows, and water ingress insurance for rainy seasons. Last time, I added a zero-deductible endorsement—no out-of-pocket costs after accidents, which was hassle-free. In short, don’t over-insure; pick the right combo based on your driving frequency and regional risks.
