Is it okay to only purchase compulsory traffic insurance for a vehicle?
4 Answers
It is acceptable to only purchase compulsory traffic insurance for a vehicle, as this is the only insurance mandated by the state, and having it allows the vehicle to be driven legally on the road. Otherwise, according to the "Road Traffic Safety Law," the traffic management department of the public security authorities shall detain the motor vehicle, notify the party to provide the corresponding license, 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 Vehicles: The full name of compulsory traffic insurance is "Compulsory Traffic Accident Liability Insurance for Motor Vehicles." It is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, and property losses of victims (excluding vehicle occupants and the insured) within the liability limits in the event of a road traffic accident involving the insured motor vehicle. The premium is based on a nationally unified standard. However, the price of compulsory traffic insurance varies for different vehicle types, mainly influenced by the number of car seats. Compared to the over 20 exemption clauses in commercial third-party liability insurance, compulsory traffic insurance covers a much broader range, including losses caused by intentional actions of the victim, property losses of the insured, related arbitration and litigation costs, and certain indirect losses due to accidents. Moreover, regardless of whether the insured vehicle is at fault in the accident, compulsory traffic insurance will compensate within the liability limits without deductibles or exemptions. 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 corporate 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 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 universally accessible online anytime, quickly and easily; Allows for reissuance and resending, eliminating concerns about losing it. If a paper version is needed offline, it can be printed or mailed; Easy management, as electronic standardization makes it easier for insurance companies and traffic police departments to manage the insurance information of various vehicles.
As a veteran driver with twenty years of experience, I can confirm that legally, purchasing only compulsory traffic insurance (交强险) is perfectly acceptable—it’s mandatory by law and covers third-party liability incidents like injuring pedestrians or damaging someone else’s car. But honestly, this approach carries significant risks. If your car gets flooded, dented by hail, or involved in a minor collision, you’ll bear all repair costs yourself, which could start from thousands. Worse yet, hitting a luxury car might leave you liable for hundreds of thousands. A colleague of mine once opted for just compulsory insurance to save money, only to face a 100,000+ RMB bill after a minor rear-end collision—the insurance covered only a fraction, forcing him to cover the huge gap himself, making life tough for a long time. So, I strongly advise adding commercial coverage like vehicle damage or third-party liability insurance based on your car’s value. Premiums are affordable, and the peace of mind is priceless. Don’t risk big losses to save small money. Driving is unpredictable—more coverage means more security. Safety first.
As the primary driver in an average family with children and elderly members, I place great importance on driving safety. It is legally permissible and most cost-effective to only purchase compulsory traffic insurance. However, this only covers others, not yourself: if you get injured or your car is damaged in an accident, all expenses must be paid out of pocket, potentially leading to liability disputes. Imagine skidding in rainy weather and causing an accident—your car's repair costs could be substantial, yet compulsory insurance wouldn't cover a single penny, which could significantly impact your family's finances. I know a friend who, after only buying compulsory insurance, faced a minor accident and had to borrow money to cover the excess liability, causing immense stress. From a safety perspective, adding commercial third-party liability insurance or passenger liability coverage is wise. Spending a bit more on premiums ensures peace of mind during emergencies and safeguards your family's well-being.
As someone who often crunches the numbers, I used to think buying only compulsory traffic insurance was the cost-effective choice—low premiums and meeting basic road requirements. But looking at the long-term picture: a single accident's losses could far exceed the saved premiums. Compulsory insurance only covers third-party damages like bodily injury or property, with limited coverage—typically around 100,000 to 80,000 RMB, beyond which you pay out of pocket. If your car is stolen or damaged, all repair costs fall on you, creating significant financial pressure without insurance backup. My advice: assess your budget and opt for a comprehensive third-party liability or collision insurance package with waiver of deductible. Sharing costs and transferring risks is far more economical than paying cash for repairs.
