Is it mandatory to buy insurance when purchasing a car?
1 Answers
It is mandatory to purchase compulsory traffic insurance when buying a car, while ordinary commercial insurance can be freely chosen. If compulsory traffic insurance is not purchased, once caught by traffic police, the consequences include: 1) vehicle impoundment, 2) requirement to back-pay the compulsory insurance, and 3) a penalty of twice the compulsory insurance premium. Compulsory traffic insurance, short for Compulsory Motor Vehicle Traffic Accident Liability Insurance, is a mandatory insurance required by the state for every vehicle owner. It is a compulsory liability insurance where the insurance company compensates for personal injuries, deaths, and property losses (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limits. It is a type of liability insurance with a coverage period of one year. Automobile commercial insurance is essentially commercial motor vehicle insurance. Commercial motor vehicle insurance is voluntarily purchased by the vehicle owner from commercial insurance companies, in addition to the state-mandated compulsory traffic insurance. Common types of automobile commercial insurance include vehicle damage insurance, third-party liability insurance, theft insurance, and passenger liability insurance. Process for purchasing insurance: Prepare documents: For individual vehicle insurance, the driver should bring their ID card, driver's license, vehicle registration certificate, letter of introduction, and other relevant documents for the insured vehicle. For vehicles engaged in individual business operations, additional documents such as business license and transport permit should be brought to the insurance company. Fill out the policy after vehicle inspection: The insurance company will conduct a vehicle inspection at a designated inspection site. The review is to confirm whether the vehicle meets the insurance company's underwriting conditions. If approved, the policy can be filled out. The vehicle owner should verify the policy details to ensure accuracy before selecting the insurance types. Pay the premium after confirmation: After confirming the policy and selecting the insurance types, the premium can be paid. Upon payment, the policyholder and the insurer can sign the insurance certificate, after which the insurance company will issue a receipt.
