Which Types of Car Insurance Should You Purchase?
2 Answers
Car insurance should include compulsory traffic insurance, third-party liability insurance, and no-deductible insurance. Below is relevant information about vehicle insurance: 1. No-deductible insurance: Most auto insurance policies set different deductible rates based on accident liability. The insurance company does not compensate for this portion. By purchasing no-deductible insurance, the portion requiring compensation can be transferred back to the insurance company, thereby reducing the car owner's losses. 2. Compulsory traffic insurance: Fully named "Compulsory Motor Vehicle Traffic Accident Liability Insurance," driving without this insurance is illegal. In the event of an accident causing losses to a third party, the car owner can receive corresponding compensation.
I think car insurance must start with compulsory traffic insurance, which is legally mandatory and can cover the other party's personal injury losses. Otherwise, driving without it is illegal. For commercial insurance, I recommend third-party liability insurance with coverage of 500,000 or 1 million yuan, so you won't risk bankruptcy in case of a major accident involving people or property. Add on vehicle damage insurance, especially for new cars or those frequently driven on highways—it saves money and hassle when repairing your own car. Don't forget the no-deductible insurance to avoid situations where the insurer only covers part of the cost, leaving you to pay the rest. New drivers should consider comprehensive coverage. For older cars or tight budgets, you can opt for just compulsory insurance plus third-party liability, skipping additional coverage like theft insurance. But remember, safety is more important than saving money—review your policy annually to ensure no critical protections are missed. This way, you can drive with peace of mind.
