Is it mandatory to pay the compulsory traffic insurance and vehicle and vessel tax?
2 Answers
Yes, it is mandatory 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 purchasing it, you cannot drive on the road. Otherwise, according to the "Road Traffic Safety Law," you may face a warning or a fine ranging from 20 to 200 yuan. Article 95 stipulates: If a motor vehicle driven on the road does not display an inspection compliance mark, insurance mark, or the driver fails to carry the vehicle registration certificate 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 necessary procedures. Compulsory traffic insurance, also known as the compulsory liability insurance for motor vehicle traffic accidents, is clearly defined in China's "Regulations on Compulsory Liability Insurance for Motor Vehicle Traffic Accidents" regarding its compensation scope. Insurance companies are required to compensate for personal injuries, fatalities, and property losses of victims (excluding the insured and passengers of the insured vehicle) 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 compensation limits for death and disability, medical expenses, property losses, and compensation limits for the insured's non-liability in road traffic accidents. The liability limit of compulsory traffic insurance refers to the maximum compensation amount that the insurance company will bear for personal injuries, fatalities, and property losses of all victims in each traffic accident involving the insured motor vehicle during the insurance period (usually one year).
I've been driving for almost ten years and have some experience with compulsory traffic insurance and vehicle and vessel tax. In China, compulsory traffic insurance is mandatory by law, and all car owners must purchase it. There's no way around it—otherwise, the car can't even hit the road, and it won't pass the annual inspection. If caught, you'll face fines and may even have your vehicle impounded. The same goes for the vehicle and vessel tax—it must be paid every year to support road construction and public services. I once tried to save money and procrastinated for a month, only to find out later that I had to pay late fees when renewing my insurance, almost losing my coverage in the process. Now I understand that paying early keeps costs low and avoids a lot of hassle. Every year when the time comes, I go to the insurance company to get it sorted—it gives me peace of mind and makes driving safer. New car owners, don’t be careless—after paying, you even get a handy text message reminder.
