Which types of car insurance must be purchased?
2 Answers
Car insurance requires the purchase of compulsory traffic insurance, third-party liability insurance, vehicle damage insurance, and no-deductible insurance, among others. The following is an introduction to relevant knowledge about car insurance: 1. Compulsory Traffic Insurance: Compulsory traffic insurance is mandatory under Chinese law, so all car owners must purchase it. If a car is driven on the road without compulsory traffic insurance, the driver will be penalized with points and fines if caught by traffic police. In severe cases, the driver may even be detained, as this is an illegal act. 2. Third-Party Liability Insurance: Third-party liability insurance (abbreviated as third-party insurance) primarily covers situations where a car collides with another vehicle while driving, with the compensation entirely paid by the insurance company. 3. Vehicle Damage Insurance: Vehicle damage insurance refers to a type of commercial car insurance where the insurer compensates within reasonable limits for damages to the insured vehicle caused by accidents while driving.
Compulsory traffic insurance is a mandatory coverage required by law. If you hit someone or damage public facilities, it covers the other party's basic losses. Third-party liability insurance is a must-have, and it's recommended to start with 2 million coverage. With luxury cars everywhere these days, hitting one could cost you more than selling your house. Own damage insurance is very practical for covering scratches and collisions on your own car, especially if your car is worth over 100,000 yuan. Seat insurance is often overlooked—it covers injuries or deaths of passengers in your car, and it's worth every penny for just a few dozen yuan. The additional insurance for non-medical insurance drugs is highly recommended. If an accident involves imported or self-paid medications, you’ll have to pay out of pocket without it. In summary, the safest combo is compulsory insurance + 2 million third-party liability + own damage + seat insurance. For just over 2,000 yuan a year, you get millions in coverage—far better than borrowing money after an accident.
