How should the compulsory traffic insurance cost for vehicles be calculated?
2 Answers
The cost of compulsory traffic insurance can vary (except for the first year), and the calculation formula is as follows: Final premium = Base premium × (1 + floating rate linked to road traffic accidents) × (1 + floating rate A linked to traffic safety violations). According to regulations, the downward floating rate can only decrease by a maximum of 30%, meaning if the vehicle owner has driven safely for three consecutive years without any claims, the floating rate can decrease by 30%; conversely, the upward floating rate can increase by a maximum of 30%. Failure to pay compulsory traffic insurance may result in the traffic management department of the public security authority detaining the vehicle and imposing a fine of twice the amount of the unpaid premium. Compulsory traffic insurance is mandatory and must be paid. The role of compulsory traffic insurance: With the continuous increase in domestic vehicles, traffic accidents are frequent, but many responsible parties are unable to compensate for the victims' losses, causing irreparable hardships to the victims and their families. With the involvement of compulsory traffic insurance, when the responsible party is unable to compensate, the insurance company can help alleviate the difficulties caused by the traffic accident for the victims and their families. The liability limits are divided into death and disability compensation limits, medical expense compensation limits, property loss compensation limits, and compensation limits for the insured party who is not at fault in the road traffic accident.
As a veteran driver with over 20 years of experience, I've always thought compulsory traffic insurance is pretty straightforward. Its cost is fixed, basically standardized nationwide. For example, our family sedan costs about 950 yuan per year. However, if you drive a truck or commercial vehicle, the price jumps significantly, reaching several thousand yuan. The key point is that its price hardly fluctuates, unlike commercial insurance which adjusts based on accident records. So when you buy it from an insurer, you can simply calculate the cost by checking your vehicle type—no complicated algorithms involved. Also, I advise everyone not to just focus on saving money; compulsory insurance is mandatory. Not having it is illegal, and you'll end up paying huge compensation out of pocket if an accident occurs. When purchasing, you can compare prices on online platforms, but the actual differences are minimal—the priority should be safety. Young people often ask me why they need this, and I always tell them it's the basic requirement for driving—don't be lazy, go get it done.
