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

[DominicAnn]

Yes, it is required. The vehicle and vessel tax is included as part of the fees when purchasing compulsory traffic insurance, which is a mandatory insurance required by the state. Without it, you cannot legally drive on the road. Otherwise, according to the "Road Traffic Safety Law," violators 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 or insurance mark, or if the driver does not carry the vehicle registration certificate or driving license, the traffic management department of the public security organ shall detain the vehicle and notify the party to provide the corresponding license, mark, or complete the necessary procedures. Compulsory Traffic Insurance: Compulsory traffic insurance, officially known as "Compulsory Liability Insurance for Motor Vehicle Traffic Accidents," is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, and property losses of victims (excluding vehicle occupants and the insured) caused by road traffic accidents within the liability limits. The premium is based on a nationally unified standard. However, the price varies depending on the vehicle type, primarily influenced by the number of seats. Compared to the over 20 exemption clauses in commercial third-party insurance, compulsory traffic insurance covers a much broader range, including losses caused intentionally by the victim, the insured's own property losses, related arbitration and litigation costs, and certain indirect losses from accidents. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance provides compensation within the liability limits without deductibles or exemptions. Vehicle and Vessel Tax: The vehicle and vessel tax is a tax payable by the owners or managers of vehicles and vessels within the territory of the People's Republic of China, as stipulated by the Vehicle and Vessel Tax Law of the PRC. Starting from July 1, 2007, vehicle owners are required to pay this tax when purchasing compulsory traffic insurance. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software and enterprise digital certificates that comply with the PKI system, bearing the electronic signature of the insurer. An insurance policy, abbreviated as a policy, is the formal written proof of the insurance contract between the insurer and the insured. It must fully record the rights, obligations, and responsibilities of both parties. The content of the policy serves as the basis for both parties to fulfill the contract. The insurance policy is proof of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources, eliminating the need to print insurance proof marks; Saves time and is convenient, unrestricted by time or location, with information accessible online anytime, quickly and easily; Allows for reissuance or resending, eliminating worries about loss. If a paper version is needed offline, it can be printed or mailed; Facilitates management, as electronic standardization makes it easier for insurance companies and traffic police departments to manage the insurance information of various vehicles.

[OBriella]

I've been driving for over a decade and know this quite well. Purchasing compulsory traffic insurance doesn't necessarily mean you have to pay the vehicle and vessel tax together, as they are two different things: compulsory traffic insurance is mandatory coverage that protects your liability in accidents, while the vehicle and vessel tax is a government-imposed tax that must be paid annually, calculated based on your car's displacement. In practice, when you buy compulsory traffic insurance, the insurance company often directly collects the vehicle and vessel tax on your behalf, saving you a trip to the tax office, which is much more convenient. If you only buy compulsory traffic insurance without paying the vehicle and vessel tax, the tax authorities may come after you with fines or affect your annual vehicle inspection. When renewing your insurance each year, remember to clarify the details of the tax collection. The vehicle and vessel tax can be paid anytime within the year, but delaying it until the end of the year might be more troublesome, so handling it all at once is the most hassle-free approach.