Is it mandatory to purchase vehicle and vessel tax and compulsory traffic insurance?
3 Answers
Yes, it is mandatory. 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 are not allowed to drive on the road. Otherwise, according to the "Road Traffic Safety Law," you may receive 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 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: The full name of compulsory traffic insurance is "Compulsory Liability Insurance for Motor Vehicle Traffic Accidents." It 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 limit. The premium is based on the nationally unified standard. However, the price of compulsory traffic insurance varies for different vehicle types, mainly influenced by the number of car seats. Compared to the more than 20 exemption clauses in commercial third-party insurance, compulsory traffic insurance covers a much broader range, including losses caused by intentional acts of the victim, the insured's own property losses, 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 limit, 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 the 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 with an electronic signature, using digital signature software and enterprise digital certificates that comply with the PKI system. An insurance policy, abbreviated as a policy, is the official written proof of an insurance contract between the insurer and the insured. The insurance policy must fully record the rights, obligations, and responsibilities of both parties to the contract. The content recorded in the insurance 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 concerns 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.
I'm an experienced driver with over a decade behind the wheel, and I've encountered this issue before. Vehicle and vessel tax and compulsory traffic insurance are indeed mandatory purchases because they're required by national law – driving without them is illegal. Compulsory insurance mainly protects third parties; if you're in an accident and injure someone, it covers medical expenses, otherwise you could be stuck paying hundreds of thousands out of pocket. The vehicle tax is collected by the tax bureau and must be paid annually for inspection – it funds road maintenance and traffic management, benefiting everyone. If you don't pay, penalties range from fines of several hundred yuan to having your vehicle impounded or license revoked. I once knew someone who tried saving this money, ended up in debt after an accident, and regretted it deeply. Nowadays, insurance companies collect the vehicle tax when you buy compulsory insurance, handling it all in one go for convenience. My advice: pay on time, don't gamble with luck – safety comes first when driving.
As a parent with children, I take this matter very seriously. Vehicle and vessel tax and compulsory traffic insurance are mandatory purchases. Compulsory traffic insurance protects pedestrians or cyclists on the road. In case of an accident, the insurance company will compensate, reducing the burden on our family. The vehicle and vessel tax is paid to the government for community road construction, which is a kind of social responsibility. If you don't buy it, you may fail the annual inspection, making the car undrivable and causing inconvenience for picking up children from school. I once delayed and was fined, so now I make sure to handle it every year. Don't think about saving this small amount of money—driving comes with many risks, and it's worth buying peace of mind. Economically speaking, insurance compensation can prevent bankruptcy, and the vehicle and vessel tax isn't expensive, just a few hundred yuan a year. I recommend buying it early and not waiting until right before the annual inspection.
