Is it mandatory to pay vehicle and vessel tax when purchasing compulsory traffic insurance?
3 Answers
Yes, it is required. The vehicle and vessel tax is included in the fees 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 qualification mark or insurance mark, or the driver does not 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 necessary procedures. Compulsory Traffic Insurance: The full name of compulsory traffic insurance is "Compulsory Liability Insurance for Motor Vehicle Traffic Accidents." It is a compulsory liability insurance where the insurance company compensates for personal injury, death, 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 the nationally unified standard rates. However, the price of compulsory traffic insurance varies for different vehicle types, primarily influenced by the number of seats. Compared to the over 20 exemption clauses in commercial third-party insurance, compulsory traffic insurance covers a broader range, including losses caused by intentional actions of the victim, property losses of the insured, related arbitration and litigation costs, and some indirect losses caused by accidents. Moreover, regardless of whether the insured vehicle is at fault in the accident, compulsory traffic insurance will compensate within the liability limits, with no deductible or exemption. Vehicle and Vessel Tax: Vehicle and vessel tax refers to a tax that owners or managers of vehicles and vessels within the territory of the People's Republic of China must pay according to the Vehicle and Vessel Tax Law of the People's Republic of China. Starting from July 1, 2007, vehicle owners are required to pay vehicle and vessel 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 insurance company. An insurance policy, abbreviated as a policy, is the official written proof of the insurance contract between the insurer and the insured. The policy must fully record the rights, obligations, and responsibilities of both parties to the insurance contract. The content recorded in 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, not restricted by time or location, with information universally accessible online anytime, quickly and easily; Allows for reissuance and resending, eliminating worries about losing it. If a paper version is needed offline, it can also be printed or mailed; Facilitates management, as electronic unification makes it easier for insurance companies and traffic police departments to manage the insurance information of various vehicles.
When I bought my first car last year and went to the insurance company to purchase compulsory traffic insurance, I was told that I had to pay the vehicle and vessel tax at the same time, which seems to be the norm. The vehicle and vessel tax is a usage tax levied by government departments, mainly used for road construction and maintenance, and the insurance company collects it on behalf of the government. If you don't pay it, the insurance company will usually refuse to issue the compulsory insurance policy because it's a legal requirement. This could result in your vehicle being unable to legally operate on the road and may also lead to fines. This practice is standard at any insurance company, and I always have to verify the amount when renewing my policy. It's advisable to prepare the necessary documents in advance. The fee is calculated based on the vehicle model and engine displacement—it's not very high but mandatory.
As a seasoned driver with years of experience, I always have to pay the vehicle and vessel tax when renewing my compulsory traffic insurance. They come as a package deal—the vehicle and vessel tax is a mandatory state levy, with insurance companies acting as collection agents. You can't buy the insurance without paying the tax. The tax amount is based on vehicle type and engine displacement; for my compact family car, the tax isn't hefty but unavoidable. The core reason is straightforward: national regulations bind the two to ensure tax collection efficiency. If unpaid, the compulsory insurance policy becomes invalid, and driving without it risks penalty points and fines. So, whether at a dealership or an external insurer, the standard procedure requires settling both payments.
