How to get car insurance in China

Types of auto insurance

Before actually being able to drive a car in China you need to take care of auto insurance.

There are two types of mandatory car insurance in China. The first one is the vehicle compulsory insurance, or third party liability insurance, which is used for covering third-party injuries and/or deaths in car accidents. It has limited financial coverage and you should check the exact amount with the insurance agency.

The second type is the commercial insurance, which covers all related claims that are not covered by the vehicle compulsory insurance.

There are various types of additional insurances you can buy for your vehicle:

• Vehicle damage insurance in many cases covers all the damage to your car regardless of the reason.
• Theft insurance covers the vehicle and everything in it in the event of burglary or theft.
• The quota-free insurance allows you not to pay 20% of total compensation in case the damage was your fault.
• Passengers insurance covers all passengers and is purchased according to the number of car seats.
• There is also driver insurance, natural damage insurance, scratch insurance, engine insurance for abnormal circumstances, even vehicle window glass insurance.