Which types of car insurance should I purchase?
2 Answers
Car insurance generally requires purchasing commercial insurance and compulsory traffic insurance. More information about commercial insurance and compulsory traffic insurance is as follows: 1. Commercial insurance is purchased for commercial purposes and is voluntarily chosen by the car owner, while compulsory traffic insurance is mandatory insurance required by the state. It is a compulsory liability insurance provided by the insurance company to compensate for personal injuries, deaths, and property losses of victims caused by road traffic accidents involving the insured vehicle, within the liability limits. 2. The main types of commercial insurance include vehicle damage insurance (comprehensive coverage), third-party liability insurance, theft insurance, and passenger liability insurance.
Every time I renew my car insurance, I focus on four key types: Compulsory Traffic Insurance is a must-have, equivalent to the car's ID—driving without it will result in fines. Third-party liability insurance is recommended with coverage starting at 2 million yuan, given the abundance of luxury cars on the road—rear-ending a Rolls-Royce is no joke. Vehicle damage insurance is also practical, especially for new cars, as even minor scratches can be costly to repair out of pocket. I always add seat insurance, which costs just a few dozen yuan to cover medical expenses for passengers. Last year, I also included water damage insurance due to heavy rains, since underground garage drainage can be unreliable. Scratch insurance, however, isn’t necessary every year—for older cars, it’s more cost-effective to accumulate minor damages and claim them under vehicle damage insurance.
