Which Types of Car Insurance Should You Purchase in 2021?
2 Answers
The following are recommended car insurance types to purchase: 1. Special Insurance for Non-Deductible: This type of car insurance has specific regulations and includes an absolute deductible rate. In the event of an accident where the car owner is fully responsible, the highest deductible rate is 20%. 2. Vehicle Damage Insurance: Vehicle damage insurance compensates the policyholder. If your car is involved in an accident, the losses can be compensated by the insurance company through this insurance. After purchasing this insurance, the car owner does not need to bear the cost of repairs, making it a crucial insurance for the vehicle itself. Vehicle damage insurance covers accidental traffic incidents within its compensation scope. 3. Third-Party Liability Insurance: In the event of a traffic accident where you are primarily at fault, third-party liability insurance is very important. 4. Compulsory Traffic Insurance: According to China's traffic regulations, every car must pay an annual fee for compulsory traffic insurance. If you are caught driving without this insurance, you will face penalty points and fines. After purchasing compulsory traffic insurance, you will receive an insurance label that must be affixed to the car's front windshield. Failure to display this label will result in penalty points and fines.
As an experienced daily driver, when I bought insurance for my car last year in 2021, I chose compulsory traffic insurance as the foundation—it's mandatory and required to even drive on the road. Then, I added vehicle damage insurance to protect my car's value, so I wouldn’t have to worry about repair costs if I accidentally scraped a wall or got into an accident. For third-party liability insurance, I opted for a coverage of 1.5 million to cover damages to others, especially since there are many luxury cars on the streets these days, and I wanted to avoid being unable to afford compensation. I also included a no-deductible clause to ensure the insurance company covers all costs, eliminating my out-of-pocket expenses. I skipped passenger liability insurance since I rarely carry passengers, and theft insurance was unnecessary as my car is mostly driven in the city with low risk. This package costs a reasonable few thousand yuan per year, providing comprehensive coverage and peace of mind while driving. I especially adjust coverage amounts based on high-risk areas to avoid unnecessary expenses.
