What Does Compulsory Insurance for Private Cars Cover?
2 Answers
Compulsory insurance includes the following: 1. Compulsory Insurance: The full name of compulsory insurance is "Compulsory Motor Vehicle Traffic Accident Liability Insurance," which is a mandatory liability insurance where the insurance company compensates for personal injury, death, and property losses caused by the insured motor vehicle in a road traffic accident to the victims (excluding the vehicle's occupants and the insured) within the liability limits. 2. Coverage of Compulsory Insurance: The coverage of compulsory insurance is for personal injury, death, and property losses caused to victims by the insured motor vehicle in a road traffic accident, where the victims do not include the vehicle's occupants and the insured. Compulsory insurance provides timely and basic protection to the victims of traffic accidents to the greatest extent.
I recently helped a friend with this, so let me talk about the coverage of compulsory traffic insurance for private cars. Simply put, compulsory insurance mainly covers compensation for victims when you accidentally hit someone or something while driving on the road. Specifically, it includes three major aspects: if someone is injured or unfortunately dies, the insurance will pay death and disability compensation; if the other party is hospitalized, medical expenses such as medicine and treatment fees are also covered; if you damage someone else's car or property, the insurance will also pay for the property loss. This is not optional—it is mandatory by the state for every vehicle, with the core purpose of protecting the interests of innocent pedestrians and avoiding disputes after an accident. However, don’t get it wrong—it doesn’t cover the repair costs of your own car or your personal safety, so it’s wise to supplement it with commercial insurance. I always remind myself when driving on the road: safety first, don’t lose big for small gains.
