What are the new regulations for auto insurance in 2021?
2 Answers
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.
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.
