What Does Compulsory Traffic Insurance Cover on a Car?
2 Answers
The coverage of compulsory traffic insurance: In the event of a road traffic accident caused by the insured motor vehicle resulting in personal injury, death, or property loss to victims other than the vehicle's occupants and the insured, the insurance company shall compensate within the legal liability limits of compulsory traffic accident liability insurance. Below is a partial introduction to compulsory traffic insurance: 1. Compulsory traffic insurance is China's first legally mandated insurance, covering material losses and personal injury-related clauses. The 'Regulations on Compulsory Traffic Accident Liability Insurance for Motor Vehicles' promulgated by the State Council stipulate that all motor vehicles driven on public roads must be insured with compulsory traffic insurance. 2. Compulsory traffic insurance implements nationwide unified liability limits, unified basic rates, and unified policy clauses. 3. The basic rates of compulsory traffic insurance are divided into 42 categories, with varying premium rates for eight major types of vehicles, including family-owned cars, non-commercial passenger vehicles, commercial passenger vehicles, non-commercial trucks, commercial trucks, special vehicles, motorcycles, and tractors, totaling 42 subcategories. However, the same vehicle type is subject to a unified price nationwide.
When it comes to compulsory traffic insurance, I've studied it since I got my first car. Simply put, it's a mandatory insurance required by the state, with the core purpose of covering compensation when you injure others. It consists of three main parts: First is the personal injury compensation, with a maximum coverage of around 180,000 RMB, which can help if an accident causes death or disability to others; second is medical expense compensation, capped at 18,000 RMB, covering hospital bills, rehabilitation costs, etc.; and third is property damage compensation, such as if you damage another car or property, with a payout of 2,000 RMB. This insurance must be renewed annually, and it's quite affordable, usually costing less than 1,000 RMB. If you don't buy it, you'll face fines and hassles when driving. Remember, it only covers third-party losses, not damage to your own vehicle. I always remind my friends to check their policy details when renewing each year to avoid mistakes.
