Friends who only dare to go on the road if they only buy compulsory traffic insurance, I will settle accounts for you!
Insurance can't change your life, but it can protect your life from accidents. This principle is also followed by car damage insurance and third-party insurance. Choosing not to buy, while it may seem like some savings in the short term, actually increases the potential risk.
01 Why do some people only buy compulsory traffic insurance?
People who only buy compulsory traffic insurance and do not buy car damage insurance and three-party insurance often have a fluke mentality. According to the China Statistical Yearbook 2023 released by the National Bureau of Statistics, a total of 256,409 motor vehicle accidents occurred in 2022. According to data released by the Ministry of Public Security in January 2024, the number of motor vehicles in China has reached 43.5 billion units. From this calculation, the probability of an accident per vehicle per year is about 005%。This may seem like a low probability, which makes many people feel that accidents will not happen to them easily, so they choose not to buy additional insurance.
However, this kind of fluke psychology often leads to the underestimation of negative probability events and the overestimation of positive probability events in decision-making, resulting in irrational decision-making.
02 How much can I save by only buying compulsory traffic insurance?
For a family car worth about 100,000 yuan, the cost of car damage insurance plus 2 million yuan of three-party insurance is about 3,000-3,500 yuan a year. If it is calculated according to 3,500 yuan and does not go out of insurance every year, the premium for the second year will be reduced. At the same time, as the age of the vehicle increases, its value is also decreasing.
Taking into account the impact of factors such as different vehicle types, driver ages and regions on premiums**, we can roughly estimate that if you do not purchase car damage insurance and all three insurance for 6 years, you can save about 15-1.70,000 yuan; If you don't buy it for 10 years, you can save more than 20,000 yuan.
03 What is the cost of not buying car damage insurance?
Although on the surface, it seems that there is a significant cost savings by not buying insurance. However, in the event of an accident, the amount of compensation to be paid is often much more than the premium saved. Now the common car of more than 100,000 yuan on the market, its zero-to-whole ratio is also quite high. According to the data released by the Automotive Technology Research Institute of China Insurance Research Institute, some family cars with a guide price of 10-150,000 yuan have a zero-to-whole ratio of more than 400%.
This means that even a small front accident is basically enough to buy car damage insurance for 4-5 years, including labor expenses and other expenses. If you encounter a larger accident, the repair cost can easily be tens of thousands of yuan, and it may even be enough to buy more than 10 years of car damage insurance. Therefore, when buying insurance, we need to weigh the pros and cons and make an informed choice.
4.If you don't buy three insurance, how much does it cost?
If you don't buy third-party insurance, you may face huge financial risks. When it comes to the cost of repairing a vehicle, even repairing it yourself can be quite substantial, potentially equivalent to a month's salary for many people. However, these repair costs pale in comparison to the huge compensation that you may have to pay for not having a third-party insurance.
Imagine if it's just a minor scratch with a family car on the road, compulsory traffic insurance does provide some compensation. However, if the situation is slightly more serious, you may have to pay thousands of dollars in additional fees. After all, not paying the corresponding premiums is tantamount to gambling.
However, the number of vehicles on the road is huge and impossible. According to the 2020 Chinese Population Census Yearbook, the number of households owning cars in the country has reached 19.08 million. Among them, 1.51 million households with a vehicle value of more than 300,000 yuan accounted for about 8%. In some developed first-tier cities, such as Shanghai and Beijing, the proportion is even more than 20%. In such an environment, even minor damage can lead to high repair costs in the event of an accident. For example, the headlight replacement cost of some high-end vehicles may be tens of thousands. In this case, the compensation of 2,000 yuan provided by the compulsory traffic insurance is almost useless.
What's worse is that if you are unfortunate enough to collide with a luxury car such as Rolls-Royce or Bentley, the repair cost can be as high as hundreds of thousands or even millions. In addition to the cost of repairs to the vehicle, the three-party insurance also covers compensation for bodily injury. According to the relevant regulations of the Supreme People's Court, the death compensation is calculated for 20 years based on the per capita disposable income of urban residents in the previous year at the location of the court where the lawsuit is filed. In 2023, for example, the national average is a whopping 10360,000 yuan. Combined with other expenses such as lost work expenses and spiritual solace payments, the total amount may reach hundreds of thousands or even more. Even after deducting the maximum compensation of 200,000 yuan that can be provided by compulsory traffic insurance, individuals still have to bear huge expenses.
Therefore, whether from the perspective of vehicle repair or personal injury compensation, it is wise to purchase three-party insurance. Although we don't want an accident to happen, if it does, there will be a huge financial risk without insurance as a cover.
5.Money-saving advice: Prioritize all three.
If you're on a budget and have to make a choice about insurance, I recommend prioritizing all three. As mentioned earlier, car damage insurance mainly covers the loss of one's own vehicle, and its compensation amount is limited and affected by the value of the vehicle. However, the compensation object of the three-party insurance is another person, and there is no upper limit on the amount of compensation. This means that in the event of a serious accident that causes damage to others** or property, the three insurance can provide the necessary financial protection.
In practice, it is not uncommon for people to face huge compensation without purchasing third-party insurance. For example, in a case in Changsha in 2020, a van collided with a Rolls-Royce due to overtaking across the double yellow line, resulting in the latter's repair cost as much as 23770,000 yuan; Similar situations include situations where a pedestrian crosses the street and is involved in an accident with a vehicle resulting in disability or death, in which cases the amount of compensation can often be in the millions or more.
Purchasing sufficient third-party insurance is not only a reflection of the responsibility of other traffic participants on the road, but also a guarantee for your future life. In the unfortunate event of a serious accident, it will at least ensure that you don't end up in financial hardship due to huge compensation, or even change the course of your life. Of course, when purchasing three-party insurance, you also need to choose the appropriate amount of insurance according to your actual situation and needs, which can avoid insufficient compensation and waste of money.