Is it necessary to purchase vehicle and vessel tax when buying compulsory traffic insurance?
2 Answers
Purchasing compulsory traffic insurance requires the payment of vehicle and vessel tax. Here are the details: 1. Compulsory traffic insurance is a mandatory liability insurance required by Chinese law. Vehicle and vessel tax is a property tax levied on registered vehicles and vessels within China, calculated based on an annual tax rate. 2. Without paying the vehicle and vessel tax, you cannot purchase compulsory traffic insurance, and there will be other consequences: (1) The vehicle cannot undergo annual inspection. (2) If the vehicle and vessel tax is unpaid, the owner must pay the overdue tax and late fees, where late fees = annual tax amount × 0.05% × number of overdue days.
When it comes to compulsory traffic insurance and vehicle and vessel tax, as someone who often helps family members handle car-related matters, I think it's important to understand the difference. Compulsory traffic insurance is a must-have policy designed to compensate the other party in case of an accident, ensuring basic safety. As for the vehicle and vessel tax, it's a type of tax levied by the state on vehicles, used for purposes like road maintenance. Last time I bought car insurance, the insurance company directly included the vehicle and vessel tax in the premium, collecting the money and handling the payment to the tax bureau on our behalf. This doesn't mean you need to buy the vehicle and vessel tax separately; instead, the insurance company takes care of it for you, saving you the hassle. If handled separately, you'd have to visit the tax bureau to pay the tax yourself, which can be quite troublesome. So, during the process of purchasing compulsory traffic insurance, the vehicle and vessel tax is conveniently taken care of. I recommend renewing the insurance on time to avoid issues like fines.
