Can I choose not to buy car insurance if my vehicle is not in use after the policy expires?
3 Answers
If the vehicle is not in use, you may opt out of purchasing commercial insurance. Compulsory traffic insurance (CTI) can also apply for policy period extension, but the vehicle must absolutely not be driven on roads during the CTI lapse period. You may first complete a vehicle suspension procedure at the DMV to postpone the annual inspection. Introduction to Compulsory Traffic Insurance: The full name of CTI is "Motor Vehicle Traffic Accident Liability Compulsory Insurance". It is a mandatory liability insurance where the insurer compensates for personal injuries, deaths, and property losses (excluding occupants of the insured vehicle and the policyholder) caused by the insured vehicle in road traffic accidents within liability limits. Nature of CTI: CTI is China's first legally mandated compulsory insurance system. Its premiums follow nationally unified standards set by the state, though prices vary by vehicle models, primarily influenced by "number of seats".
After working in a repair shop for ten years, I have to be honest with you: even if your car isn't being driven, compulsory traffic insurance is absolutely non-negotiable! The law spells it out clearly—get caught without it, and your vehicle gets impounded plus a fine. Last year, we had a car in here where the owner thought parking it in an underground garage was safe enough and didn't renew the insurance. Then a heavy storm flooded half the garage, and now they're out over 20,000 yuan for engine repairs. If you really need to park long-term, take your vehicle registration to the DMV and file for a suspension of use—that can save you three months of premiums. As for commercial insurance, opinions vary. But if you're parking outdoors where falling branches, hail, or kids scratching your car are risks, going without coverage is just asking to foot the bill yourself.
Back when I was a new driver, I also pondered this issue. Later, a traffic police friend enlightened me with one sentence: As long as the car isn't deregistered, it must have compulsory traffic insurance if the tires touch the ground! He's handled too many cases where someone just moved their car to the neighborhood entrance for washing, got checked within a mere 200 meters, and had their vehicle impounded. Now, I'll share my solution for idle cars: compulsory insurance is a must, but for commercial insurance, I drop the vehicle damage coverage and only keep third-party liability and non-deductible coverage. This saves over 2,000 yuan annually. If hail damages the car parked outdoors, I accept the loss, but if I hit a pedestrian, there's still coverage—last year, a neighbor's tricycle scratched a pedestrian, and the 80,000 yuan compensation was fully covered by third-party insurance.
