What Does Compulsory Traffic Insurance Cover?

[JulietteMarie]

The compulsory traffic insurance includes provisions related to material losses and personal injuries. As a mandatory insurance, the Compulsory Traffic Accident Liability Insurance Regulations issued by the State Council stipulate that all motor vehicles operating on roads must be covered by compulsory traffic insurance. This insurance implements a unified national liability limit, a unified basic premium rate, and unified policy terms. As long as losses are caused to a third party, regardless of fault, they all fall within the compensation scope of compulsory traffic insurance. Compulsory traffic insurance is a mandatory liability insurance where the insurance company compensates for personal injuries, deaths, or property losses of victims (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured vehicle, within the liability limit. All owners or managers of motor vehicles operating on roads within China must purchase compulsory traffic insurance, and uninsured vehicles are not allowed on the road.

[LaAnthony]

Compulsory Traffic Insurance (CTI) is a mandatory auto insurance required by the state, primarily covering compensation for injuries or property damage caused to others. For instance, if you accidentally hit another car or injure a pedestrian while driving, CTI will cover medical expenses or repair costs. However, it does not cover damages to your own vehicle—that's where commercial insurance comes in. I made sure to understand this distinction before hitting the road to avoid future issues. Remember to renew your policy on time each year; otherwise, you risk fines or penalty points if caught. When choosing an insurance provider, ask for recommendations from friends and opt for one with good service to ensure faster claims processing. In short, CTI is basic protection—spending a small amount for safety is worth it, so don’t skip it to save trouble. New drivers especially should take note; having it brings real peace of mind when driving.

[CamillaAnn]

Driving on the road requires compulsory traffic insurance, which primarily covers third-party losses. This means if you accidentally cause harm to others or damage their property, such as hitting a parked car or pedestrian, the insurance will cover medical expenses and repair costs. The coverage limit is substantial, with specific amounts determined by national regulations, generally sufficient for common minor accidents. The premium is affordable, but don’t mistake it for covering your own vehicle—if you want to save money, don’t confuse it with commercial insurance. After driving for several years, I’ve seen people who didn’t understand this and ended up paying out of pocket after an accident, regretting it deeply. Regularly review your policy to ensure there are no gaps. Combined with safe driving habits, prioritizing safety is the true way to maximize the value of insurance.

[OEmerson]

The core of compulsory traffic insurance is to protect third parties other than yourself. For example, if an accident causes injury, death, or property damage to others, the insurance will cover the compensation. This includes medical expenses, repair costs for damaged items, etc., but damage to your own vehicle requires additional insurance coverage. After purchasing the insurance, it's crucial to be aware of the coverage limits to avoid being personally responsible for costs that exceed them. Familiarize yourself with the details before hitting the road—safe driving relies on its support.