What are the consequences of not paying compulsory traffic insurance for a year?
1 Answers
The consequence of not paying compulsory traffic insurance for a year is that the vehicle cannot be driven on the road. When there is a traffic police check at an intersection or an accident occurs, the traffic police will check whether the vehicle has compulsory traffic insurance. If the vehicle does not have compulsory traffic insurance, it will be impounded. Compulsory traffic insurance is a mandatory insurance required by the state. If you are caught by the traffic police without paying compulsory traffic insurance, in addition to the vehicle being impounded, you will also face a fine of twice the premium of the compulsory traffic insurance. During vehicle annual inspections and ownership transfers, the validity date of the compulsory traffic insurance is usually checked. If the vehicle has not been insured with compulsory traffic insurance or the insurance has expired, the annual inspection and ownership transfer cannot be processed. According to the compulsory traffic insurance rate fluctuation mechanism, if there are no claims for one year, the premium will be reduced by 10%; if there are no claims for two consecutive years, the premium will be reduced by 20%; and if there are no claims for three consecutive years or more, the premium will be reduced by 30%. If the compulsory traffic insurance is discontinued, some insurance companies may no longer provide discount benefits.
