Is it necessary to pay the vehicle and vessel tax when purchasing compulsory traffic insurance?
2 Answers
Yes, it is required. The vehicle and vessel tax is included in the compulsory traffic insurance fee, which is mandatory 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 for Vehicles: 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 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, mainly influenced by the number of 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 an 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 payable by owners or managers of vehicles and vessels within the territory of the People's Republic of China according to the Vehicle and Vessel Tax Law of the People's Republic of China. Since July 1, 2007, drivers must 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 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; Time-saving and convenient, not restricted by time or location, with information accessible online anytime, quickly and easily; Can apply for reissuance or resending, eliminating worries about losing it. If a paper version is needed offline, it can also be printed or mailed; Easy management, as electronic unification makes it easier for insurance companies and traffic police departments to manage the insurance information of each vehicle.
The first time I went to buy compulsory traffic insurance by myself, the staff said they would collect the vehicle and vessel tax at the same time. I thought I was being scammed. Later, I found out that it's actually a national requirement—it's the tax you have to pay annually for using your vehicle, which is separate from insurance. The insurance company just collects this fee on behalf of the government to save us the hassle of going to the tax bureau. However, it's important to note that if you've already paid the vehicle and vessel tax at the vehicle management office during your annual inspection at the beginning of the year, remember to bring the receipt to show the insurance company. Otherwise, you might end up paying twice. My neighbor made this mistake last year and ended up paying over 300 yuan extra—what a loss! Now, I always pay it together when I renew my insurance in December, which is much more convenient.
