Is it okay to only buy compulsory traffic insurance for a new car?
2 Answers
It is permissible to only purchase compulsory traffic insurance for a vehicle, as this is the only insurance mandated by the state for road use. Without it, according to the "Road Traffic Safety Law," the traffic management authorities of the public security organs are required to impound the motor vehicle, notify the party to provide the corresponding license, certificate, or mark, or complete the necessary procedures, and may issue a warning or impose a fine ranging from 20 to 200 yuan. Compulsory Traffic Insurance for Automobiles: 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 (excluding vehicle occupants and the insured) caused by road traffic accidents involving the insured motor vehicle within the liability limits. The premium is based on a nationally unified standard, but the price varies depending on the vehicle type, primarily influenced by the number of seats. Compared to the over 20 exemption clauses in commercial third-party insurance, compulsory traffic insurance covers a much broader range, including losses caused intentionally by the victim, the insured's own property losses, related arbitration and litigation costs, and some indirect losses from accidents. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance will compensate within the liability limits without any deductible or exemption. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software compliant with the PKI system and an enterprise digital certificate, bearing the electronic signature of the insurance company. An insurance policy, abbreviated as a policy, is the formal written proof of the insurance contract between the insurer and the insured. It must fully record the rights, obligations, and responsibilities of both parties to the insurance contract. The contents of the insurance policy serve 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, unrestricted by time or location, with information universally accessible online anytime, quickly and easily; Allows for reissuance or resending, eliminating concerns about loss. If a paper version is needed offline, it can be printed or mailed; Facilitates management, as electronic standardization makes it easier for insurance companies and traffic police departments to manage the insurance information of various vehicles.
My first car was also a brand-new one, and I once considered only purchasing compulsory traffic insurance. To be honest, it's legally permissible to drive with just compulsory insurance, but after two years of driving, I realized it's totally not worth it. Once on a rainy day, the road was slippery, and I couldn't brake in time, rear-ending a BMW in front. The compulsory insurance only covered 2,000 yuan in property damage, leaving me to pay over 20,000 yuan out of pocket. Had I bought third-party liability insurance under commercial insurance at that time, I wouldn't have had to dip into my savings. Moreover, with parking being so challenging nowadays, minor scratches often occur even in residential areas, and a single paint repair job costs at least 500-600 yuan. The first five years of a new car are the most prone to minor accidents, and having only compulsory insurance is like driving naked—it can't even cover medical expenses in case of a major incident. Now, I always advise beginners to at least add third-party liability insurance. The premium for a million-yuan coverage isn't expensive, but the key is the peace of mind it brings when driving.
