Is it mandatory to pay vehicle insurance and vessel tax every year?
2 Answers
According to tax laws, vehicle insurance and vessel tax must be paid annually, with the declaration and payment period from January 1 to December 31 each year. This means that payment for the current year can be made by December 31, and late payments will incur penalties. Below is relevant information: 1. Vessel Tax: Vessel tax, also known as vehicle and vessel usage tax, is a usage tax levied on vehicles traveling on public roads and vessels navigating domestic rivers, lakes, or ports. The tax is calculated based on the type (such as motor vehicles, non-motor vehicles, passenger cars, cargo trucks, etc.), tonnage, and specified tax rates. 2. Payment Standards: The payment standards for vessel tax vary by region and also differ based on the type of vehicle. For example, the standards for trucks, sedans, and buses are all different. Additionally, if vehicle owners need to inquire about vehicle and vessel usage tax, insurance companies will calculate the tax when processing vehicle insurance.
As a veteran driver with over a decade of experience, I must say that car insurance and vehicle tax must be paid on time every year—it's a hard-and-fast legal requirement. Compulsory traffic insurance is mandatory for every car owner, specifically covering compensation for casualties in traffic accidents; the vehicle tax is also included and paid together through the insurance company. If you don't pay, the consequences are severe: traffic police can impose fines of several hundred yuan during inspections and may even deduct points; your car won’t pass the annual inspection, affecting its roadworthiness; if left unresolved for too long, the vehicle could be towed and confiscated. Imagine getting into an accident without insurance—you’d be financially devastated. While commercial insurance isn’t mandatory, I recommend adding third-party liability coverage—it’s affordable with high coverage, giving you peace of mind in case of an accident. I suggest renewing your policy a month in advance; online processing is quick and convenient. In short, follow the rules, pay on time, and drive with peace of mind and safety—don’t cut corners and end up with bigger problems.
