What are the new regulations for auto insurance in 2021?

[OKeegan]

Here is an introduction to the new regulations for vehicle insurance in 2021: With "protecting consumer rights" as the main goal: Establishment of a market-oriented clause and rate formation mechanism, optimization of coverage responsibilities, enrichment of products and services, reasonable additional costs, sound market system, orderly market competition, improved operational efficiency, and high-quality development of auto insurance. In the short term, "price reduction, increased coverage, and quality improvement" will serve as phased goals. Enhancement of compulsory traffic insurance coverage: Increase the liability limit of compulsory traffic insurance and optimize the floating coefficient of compulsory traffic insurance road accident rates. Expansion and optimization of commercial auto insurance coverage services: Specific measures include expanding the coverage scope of commercial auto insurance, removing exemption clauses that often lead to claims disputes in practice, increasing the liability limit of commercial auto insurance, and supporting the diversification of commercial auto insurance products.

[DeMaci]

When renewing my car insurance last year, I noticed significant changes. The compensation amount for compulsory traffic insurance increased substantially - the death/disability coverage limit rose from 110,000 to 180,000 yuan, and medical expense coverage increased to 18,000 yuan, meaning much higher payouts in case of accidents. The vehicle damage insurance now bundles theft coverage, glass coverage and other add-ons, eliminating the need to purchase them separately, which is much more convenient. I also found steeper discounts during renewal - a 50% discount for three consecutive claim-free years saved me several hundred yuan. Accident handling has become more efficient too, with earthquake disasters now covered (previously excluded), and insurers can pay first then recover from the at-fault party later. These improvements definitely make driving feel more secure.

[VanOlive]

Compared to pre-2021 policies, the most substantial change in this reform is the bundled insurance packages. Previously, we had to deliberate annually over whether to purchase glass insurance or spontaneous combustion insurance—now these are all included in the main vehicle damage coverage, eliminating the need to check multiple boxes during renewal. Pricing has become more dynamic, with claims history now reviewed over three years. Thanks to my clean driving record, this year's premium came with a direct 30% discount. Third-party liability coverage can now reach tens of millions, which brings peace of mind given the abundance of luxury vehicles in urban areas. The new driving/passenger accident insurance replaces the old passenger liability coverage, offering more comprehensive protection. Overall, the upgraded coverage comes without price hikes, making it even more cost-effective for long-term claim-free drivers.

[VonArabella]

Just after buying a new car, I encountered the new regulations, and the most immediate feeling was the enhanced protection. The compulsory traffic insurance now covers 180,000 yuan for death and 18,000 yuan for medical expenses, with improved basic coverage. Third-party liability insurance can now be purchased up to 10 million yuan, offering more flexible coverage options. The policy has been significantly simplified, with car damage insurance including six or seven additional coverages, eliminating the hassle of selection. Premium fluctuations are based on three years of records, making it more cost-effective for new drivers who maintain safe driving in the long run. The optimized clauses make accident handling more straightforward—for example, if a car is damaged by a falling tree, the insurance company compensates directly without disputes. The reform has minimal impact on the first-year premium but offers clear long-term advantages.