Is it okay to only purchase compulsory traffic insurance for a 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 legal road use. Without it, according to the "Road Traffic Safety Law," the traffic management department of the public security authorities can impound the vehicle, require the owner to provide the corresponding license, registration, or complete necessary formalities, 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 within the liability limits. The premium is based on the nationally unified standard rates. However, the price of compulsory traffic insurance varies depending on the vehicle type, primarily influenced by the number of seats. Compared to the over 20 exemption clauses in commercial third-party liability insurance, compulsory traffic insurance covers a broader range, including losses caused by intentional acts of the victim, the insured's own property losses, related arbitration and litigation costs, and certain indirect losses due to accidents. Moreover, regardless of whether the insured vehicle is at fault in an accident, compulsory traffic insurance will provide compensation within the liability limits, with no deductible or exemptions. Introduction to Electronic Insurance Policies An electronic insurance policy refers to a digital policy issued by an insurance company using digital signature software and corporate digital certificates compliant with the PKI system, bearing the electronic signature of the insurer. 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 contract. The contents of the policy serve as the basis for both parties to fulfill their contractual obligations. The policy is evidence of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources, eliminating the need to print insurance proof labels; Time-saving and convenient, unrestricted by time or location, with information accessible online anytime, quickly and easily; Allows for reissuance and resending, eliminating concerns about loss. If a physical copy is needed offline, it can be printed or mailed; Simplifies management, as electronic unification makes it easier for insurance companies and traffic police departments to manage vehicle insurance information.
I had driven for over a decade and actually tried only purchasing compulsory traffic insurance. That time on the highway, I got rear-ended, and the other party was fully at fault but didn't have enough insurance coverage. As it turned out, the compulsory insurance only covered the other party's medical expenses and minor property damage. I had to pay out of pocket for the repair costs of my completely destroyed radiator and front end, which totaled over 8,000 yuan. It's true that compulsory insurance is mandatory, but it only covers basic third-party liability. Nowadays, when car repairs can easily cost tens of thousands, it's really not enough. If the accident is serious and someone is severely injured, the compensation limit of over 100,000 yuan can be exhausted instantly, leaving you to cover the shortfall yourself. That's why I now add third-party liability insurance and car damage insurance, spending an extra couple thousand yuan for peace of mind and convenience.
