Which types of car insurance must 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. Additional reference materials are as follows: 1. Article 75 of the 'Road Traffic Safety Law of the People's Republic of China': Medical institutions shall provide timely rescue to injured persons in traffic accidents and shall not delay treatment due to unpaid rescue costs. If the vehicle involved in the accident has compulsory third-party liability insurance, the insurance company shall pay the rescue costs within the liability limit. If the rescue costs exceed the liability limit, or if the vehicle is not insured with compulsory third-party liability insurance or flees after the accident, the social assistance fund for road traffic accidents shall advance part or all of the rescue costs, and the fund management agency has the right to recover the costs from the responsible party. 2. Article 21 of the 'Regulations on Compulsory Traffic Accident Liability Insurance for Motor Vehicles': If a road traffic accident involving the insured motor vehicle causes personal injury, death, or property loss to victims other than the vehicle's occupants or the insured, the insurance company shall compensate within the liability limit of the compulsory traffic accident liability insurance in accordance with the law. If the loss from the road traffic accident is intentionally caused by the victim, the insurance company shall not compensate.
As a seasoned driver with over a decade of experience, I'd like to share some insights. There's only one type of car insurance that's absolutely mandatory: compulsory traffic insurance, also known as Motor Vehicle Traffic Accident Liability Compulsory Insurance. It's a basic coverage required by the state - you can't legally drive without it, or you'll face fines up to 2,000 RMB or even vehicle impoundment. This insurance mainly covers third-party bodily injury and property damage in accidents, with coverage typically capped at just 122,000 RMB, which often proves insufficient in real-world scenarios. That's why I strongly recommend supplementing it with third-party liability insurance, opting for coverage of 1 million or 1.5 million RMB. This ensures you won't face financial ruin if you accidentally injure someone or collide with a luxury vehicle. For new cars, vehicle damage insurance is quite practical too, but older vehicles can skip this to save costs. The additional premium typically amounts to just a few hundred to a thousand RMB annually - a worthwhile safety investment. Don't jeopardize major safety for minor savings - safe driving should always be the top priority.
