Is it necessary 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 compulsory traffic insurance as a tax fee. Compulsory traffic insurance is a mandatory insurance required by the state. Without it, you cannot drive on the road. Otherwise, according to the "Road Traffic Safety Law," you will be warned or fined between 20 and 200 yuan. Article 95 stipulates: If a motor vehicle driven on the road does not display an inspection compliance mark or insurance mark, or does not carry the vehicle license or driver's 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 required procedures. Compulsory traffic insurance for vehicles:
Let me share my personal driving experience. Compulsory insurance and vehicle and vessel tax are both mandatory, but they are separate entities. Compulsory insurance is a mandatory liability insurance that helps cover damages to others in case of an accident—it's required by law and non-negotiable. The vehicle and vessel tax, on the other hand, is an annual tax paid to the government, applicable to every vehicle, with no way to avoid it. I handled both at the dealership when I bought my car, and during renewals, they’re often processed together to save trips to different places. If missed, unpaid vehicle and vessel tax can lead to penalties from the tax bureau—the fines aren’t small and can even affect your vehicle inspection. I recommend owners handle these on time every year; mobile apps make it super convenient now. In short, both are essentials for driving—safety first, don’t delay.
