Can Compulsory Traffic Insurance Cover the Repair of Your Own Car?
2 Answers
No, it cannot. Compulsory Traffic Insurance does not cover the repair costs of your own car because it is designed to compensate for damages to third-party vehicles and individuals. This insurance is mandatory by the state, and you must have it to legally drive on the road. Otherwise, according to the "Road Traffic Safety Law," the traffic management department of the public security authorities may impound the vehicle, require the driver to provide the corresponding license, registration, or complete the necessary procedures, and may issue a warning or impose a fine ranging from 20 to 200 yuan. Compulsory Traffic Insurance for Vehicles: The full name of Compulsory Traffic Insurance is "Compulsory Liability Insurance for Motor Vehicle Traffic Accidents." It is a mandatory liability insurance where the insurer compensates for bodily injury, death, and property losses of victims (excluding vehicle occupants and the insured) caused by road traffic accidents within the liability limits. The premium is based on the nationally unified standard rates. However, the price of Compulsory Traffic Insurance varies for different vehicle types, primarily influenced by the number of seats. Compared to the over 20 exemption clauses in commercial third-party liability insurance, Compulsory Traffic Insurance's exemptions cover losses caused by intentional acts of the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses from accidents, offering much broader coverage. Additionally, regardless of whether the insured vehicle is at fault in an accident, Compulsory Traffic Insurance will provide compensation within the liability limits. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company with their electronic signature, using digital signature software and enterprise digital certificates that comply with the PKI system. An insurance policy, or simply a policy, is the official written proof of the insurance contract between the insurer and the insured. It must fully record the rights, obligations, and responsibilities of both parties. The content of the policy serves as the basis for both parties to fulfill their contractual obligations. The insurance policy is proof of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources, eliminating the need to print insurance proof labels; Time-saving and convenient, unrestricted by time or location, with information accessible online anytime, quickly and easily; Allows for reissuance or resending, eliminating concerns about loss. If a paper version is needed offline, it can be printed or mailed; Simplifies management, as electronic standardization makes it easier for insurance companies and traffic police departments to manage the insurance information of various vehicles.
I remember the first time I encountered this issue was when I accidentally scraped my brand-new car against a pillar while reversing. I thought the compulsory traffic insurance would cover the repair, only to find out it doesn’t cover damage to your own vehicle at all. Compulsory traffic insurance, mandated by the state, only covers losses to others—like if you hit someone else’s car or a pedestrian, it compensates for their medical expenses and property damage. But when it comes to your own car’s damage, it’s completely useless. That time, I had to pay 3,000 RMB out of pocket for paint repairs. Later, I wised up and bought commercial vehicle damage insurance. Now, whether it’s minor scratches or major accidents, getting my car fixed is much easier. I suggest you add this coverage sooner rather than later—don’t skimp on this expense. Safe driving comes first, but having a backup plan brings extra peace of mind.
