Does Vehicle and Vessel Tax Include Water Damage Insurance?
2 Answers
Vehicle and Vessel Tax does not include water damage insurance. 1. Introduction to Vehicle and Vessel Tax: Vehicle and Vessel Tax is a type of tax levied on the owners of vehicles and vessels (cars and ships). It is a local tax, determined based on the specific management measures of local tax bureaus, in accordance with the "Vehicle and Vessel Tax Law of the People's Republic of China" and other regulations. 2. Introduction to Water Damage Insurance: Water damage insurance is a newly derived type of auto insurance, which mainly refers to an additional insurance purchased by car owners for their engines. It primarily provides compensation for engine damage caused by driving through waterlogged roads or being submerged in water. However, if the car owner forcibly starts the engine after submersion, causing damage, the insurance company will not provide compensation.
The vehicle and vessel tax indeed does not include water damage insurance, which is a common misconception. The vehicle and vessel tax is an annual government levy determined by your vehicle's engine displacement, and once paid, that's it. Water damage insurance, on the other hand, is an additional option under commercial auto insurance, specifically covering losses caused by vehicle submersion, and it requires a separate purchase. I remember one heavy rainy day when my car parked roadside got flooded, only to find out upon checking my insurance that water damage coverage wasn't included in the vehicle and vessel tax—it needed extra enrollment to cover repair costs. So, never expect taxes to replace insurance, especially in areas prone to heavy rainfall. It's wiser to promptly contact your insurer to add this coverage, preventing unexpected losses.
