Does Compulsory Traffic Insurance Cover Water-Damaged Vehicles?
2 Answers
Compulsory traffic insurance does not cover water damage to your vehicle because it is designed to compensate third-party vehicles and individuals. To claim for vehicle damage, you must have purchased a separate vehicle damage insurance policy. Compulsory traffic insurance is mandatory by law, and without it, you cannot legally drive on the road. According to the "Road Traffic Safety Law," traffic management authorities under the public security department may impound the vehicle, require the owner to provide the necessary license plates, certificates, or complete relevant procedures, and may impose a warning or a fine ranging from 20 to 200 yuan. Automobile Compulsory Traffic Insurance: The full name of compulsory traffic insurance is "Compulsory Motor Vehicle Traffic Accident Liability Insurance." It is a mandatory liability insurance where the insurance company compensates for personal injuries, fatalities, and property losses (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the specified liability limits. The premium is based on a nationally unified standard. 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 liability insurance, compulsory traffic insurance covers a broader range, including losses caused intentionally by the victim, the insured's own property losses, related arbitration and litigation costs, and certain indirect losses from accidents. Additionally, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance will compensate within the liability limits without deductibles or exemption rates. Introduction to Electronic Insurance Policies An electronic insurance policy is a digital policy issued by an insurance company using digital signature software and corporate digital certificates that comply with the PKI system, bearing the insurer's electronic signature. An insurance policy, or policy for short, is the official 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 obligations. The insurance policy is proof of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources by 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 worries about losing it. If a physical copy is needed offline, it can be printed or mailed; Easier management, as digitization standardizes the process, making it more convenient for insurance companies and traffic police departments to manage vehicle insurance information.
I'm absolutely qualified to speak on this matter. Last year during the rainy season, my car got completely flooded. At first, I thought compulsory traffic insurance would cover it, but I was shocked when I inquired. As a veteran driver with over a decade of experience, I know that compulsory insurance only covers compensation for accidents involving others, such as hitting a person or someone else's car—it doesn't cover damage to your own vehicle. After that flood incident, I spent tens of thousands out of pocket to repair my car. Learning my lesson the hard way, I immediately purchased comprehensive insurance with flood coverage, which finally gave me peace of mind. With the rainy season approaching, I urge everyone not to skimp on insurance—check your policy now. If it doesn’t cover vehicle damage, get it supplemented immediately. Otherwise, you might end up like me, suffering huge losses and paying for repairs yourself. Regular vehicle maintenance can help prevent some water-related issues, but at the end of the day, insurance is the real safeguard. Don’t wait until it’s too late to regret it.
