Which Types of Car Insurance Should You Purchase in 2021?
4 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.
I always place great emphasis on the concept of safety protection when driving. For my 2021 car insurance, I will definitely choose compulsory traffic insurance as the mandatory requirement to start driving, which must not be omitted. Next, vehicle damage insurance is essential to cover losses to my own car, especially for new cars that are expensive and prone to damage. Third-party liability insurance is extremely important, and I recommend at least 2 million coverage to protect against major accidents involving injuries to others or damage to luxury cars. Passenger liability insurance ensures the safety and medical expenses of passengers, providing greater peace of mind. Additionally, no-deductible insurance eliminates out-of-pocket expenses, saving money and hassle. This combination forms the minimum safety barrier—don’t take chances by saving small amounts and neglecting potential unexpected losses, which can affect driving mentality. Years of driving experience have taught me to prioritize core coverage.
For cost-conscious car owners in 2021, purchasing compulsory traffic insurance and third-party liability insurance is sufficient. The former is mandatory, while the latter covers third-party damages with a 1 million yuan limit, which is generally adequate for city use. Vehicle damage insurance can be omitted if the car is old and the repair costs are not worth it, accepting the risk instead. This is how I operate—low premiums while staying compliant, but remember to maintain steady driving habits and avoid night driving to reduce risks. Additional coverage like passenger insurance and theft insurance can usually be skipped to keep the annual budget around a thousand yuan, balancing actual needs without overbuying.
