Does Compulsory Traffic Insurance Cover Water-Damaged Vehicles?
2 Answers
Compulsory traffic insurance does not cover water damage to vehicles because it is designed to compensate third-party vehicles and individuals. Vehicle damage can only be claimed if you have purchased auto damage insurance. Compulsory traffic insurance is mandatory by the state, and it is required for legal road use. According to Article 98 of the Road Traffic Safety Law: The traffic management department of the public security organ shall detain the motor vehicle, notify the party to provide the corresponding license plate, certificate, 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 insurance company 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 depending on the vehicle type, primarily influenced by the number of seats. Compared to the over 20 exemption clauses in commercial third-party insurance, compulsory traffic insurance covers a much broader scope, including losses caused by intentional acts of the victim, the insured's own property losses, related arbitration and litigation costs, and certain indirect losses from accidents. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance will compensate within the liability limits, with no deductibles or exemptions. Introduction to Electronic Insurance Policies: An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software compliant with the PKI system and corporate digital certificates, bearing the insurer's electronic signature. An insurance policy, abbreviated as a policy, is the formal written proof of the insurance contract between the insurer and the insured. It must fully document the rights, obligations, and responsibilities of both parties. The content recorded in the policy serves as the basis for both parties to fulfill their contractual duties. 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 physical copy 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 vehicle insurance information.
As a car owner who has experienced several major floods, I can tell you that compulsory traffic insurance does not cover the damage to your own waterlogged vehicle. Compulsory insurance only covers the harm or property damage you cause to others—for example, if you drive through floodwaters and cause an accident that injures someone, it will compensate the other party, but if your car’s engine is ruined by water, it won’t pay a penny for repairs. After the last typhoon, my neighbor’s car was submerged, and the repair costs ran into tens of thousands, all out of pocket. The insurance company said it wasn’t liable for that. The key is to distinguish between direct vehicle damage caused by flooding and indirect liability issues—if you haven’t purchased commercial vehicle damage insurance or additional water-related coverage, don’t expect any compensation. My advice is to check weather warnings in advance during the rainy season, avoid driving through low-lying areas, and prioritize safety over saving money. If your car gets flooded, immediately turn off the power and call for a tow truck to prevent further damage from short circuits in the electronic systems.