Which types of car insurance should you generally purchase?
3 Answers
Generally, vehicles require 3 types of insurance. Below are specific introductions to each insurance: Compulsory Traffic Accident Liability Insurance: Full name is 'Motor Vehicle Traffic Accident Liability Compulsory Insurance'. Driving without this insurance is illegal. Vehicle Damage Insurance: This insurance covers compensation for vehicle damage, helping to reduce losses from collisions and other damages. Third-party Liability Insurance: Provides corresponding compensation when an accident causes losses to a third party. After the auto insurance reform, the coverage of Vehicle Damage Insurance has expanded, including previously optional add-ons like non-deductible insurance and water damage insurance, which are now incorporated into Vehicle Damage Insurance.
I've been driving for over a decade and only choose the most practical insurance options every year. Compulsory traffic insurance is a must, it's mandatory by law. Third-party liability insurance should be prioritized with coverage of at least 2 million yuan, as repair costs are expensive nowadays and hitting a luxury car would be even more troublesome. Vehicle damage insurance is also recommended, especially for new cars or those who frequently drive long distances, as it covers the vehicle's own losses. The no-deductible insurance is particularly important as it makes claims much easier. Passenger insurance can be added based on actual needs, and can be skipped if family members already have other insurance coverage. Additional riders like glass insurance or water damage insurance should be considered according to driving conditions, but aren't very necessary for city driving. Remember not to be talked into buying a bunch of useless insurance products by salespeople - just make sure the core protections are in place.
Just bought the second year of car insurance this year, sharing my selection rationale. The most important is compulsory traffic insurance, which is mandatory for road use. Third-party liability insurance must be sufficiently covered—I opted for 3 million coverage, spending a few hundred extra for peace of mind. Also purchased vehicle damage insurance, as scratches on a new car are painful, especially with inevitable minor bumps in the city. Remember to add the no-deductible insurance; otherwise, paying out of pocket during a claim is a loss. For passenger liability insurance, I only covered the driver and skipped passengers. As for add-ons like scratch insurance and spontaneous combustion insurance, the 4S store pushed hard but I declined. More insurance isn't necessarily better; practicality and budget are key. Comparing quotes from different companies can save a lot.
