Is it mandatory to pay compulsory traffic insurance and vehicle and vessel tax?

1 Answers
SanMariana
07/29/25 8:21pm
Yes, it is compulsory to purchase and pay. The vehicle and vessel tax is included in the cost when purchasing compulsory traffic insurance, which is a mandatory insurance required by the state. Without it, you are not allowed to drive on the road. Otherwise, according to the "Road Traffic Safety Law", you will be warned or fined between 20 and 200 yuan. Article 95 stipulates: If a motor vehicle driven on the road does not display an inspection pass, insurance mark, or the driver fails to carry the vehicle license or driving license, the traffic management department of the public security organ shall detain the motor vehicle and notify the party to provide the corresponding license, mark, or complete the required procedures. Compulsory traffic insurance, also known as the compulsory liability insurance for motor vehicle traffic accidents, has its compensation scope clearly defined by China's "Regulations on Compulsory Traffic Accident Liability Insurance for Motor Vehicles". Insurance companies are required to compensate for personal injuries, deaths, and property losses of victims (excluding the driver and the insured) caused by road traffic accidents involving the insured motor vehicle, within the liability limits. The compulsory liability insurance for motor vehicle traffic accidents implements a unified liability limit nationwide. The liability limits are divided into death and disability compensation limits, medical expense compensation limits, property loss compensation limits, and compensation limits for cases where the insured is not at fault in the road traffic accident. The liability limit of compulsory traffic insurance refers to the maximum compensation amount that the insurance company will bear for all victims' personal injuries, deaths, and property losses in each traffic accident during the insurance period (usually one year).
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