What Does Compulsory Traffic Insurance for Automobiles Include?
4 Answers
It consists of seven components: initial costs, indirect claim expenses, insurance guarantee fund, social assistance fund for road traffic accidents, management fees, transfer fees, and reinsurance costs. Compulsory motor vehicle insurance is designed to protect non-vehicle occupants and the insured. More relevant information is as follows: 1. Insurance can be purchased from different companies: When purchasing compulsory traffic insurance for motor vehicles, the insurance company is not a determining factor. Changing insurance companies does not affect the discounts or benefits for purchasing compulsory traffic insurance. What affects insurance discounts and benefits is the number of claims made by the vehicle in the previous year. 2. Definition of compulsory traffic insurance for automobiles: It is a type of insurance that protects non-vehicle occupants and the policyholder in the event of a traffic accident. It is a mandatory insurance that covers the personal and property losses of others after a traffic accident. The insurance is compulsory and must be purchased as long as the vehicle is registered and in use.
Compulsory Traffic Insurance (CTI) is the basic coverage you must purchase as a driver. It covers compensation for victims in case of an accident. Simply put, if you injure someone, it pays for medical expenses and subsequent compensation, including death or disability pensions. If you damage someone else's vehicle or property, it also covers repair or compensation costs. However, don’t expect it to cover your own losses, like vehicle damage or personal injuries—those require commercial insurance. The government mandates this insurance to reduce disputes and ensure victims receive timely compensation. A friend of mine once had a minor rear-end collision where the other car’s bumper was damaged, and CTI easily covered the repair costs. I recommend renewing it on time to avoid fines and ensure uninterrupted driving.
When I first got my driver's license, I was really curious about what compulsory traffic insurance covers—it's actually about protecting others, not yourself. It helps you compensate victims for medical expenses in accidents, such as hospitalization, disability benefits, or even death compensation. It also covers property damage, like car or item repairs. However, it doesn't cover damage to your own vehicle or health issues. I know new drivers often ask if it's expensive—usually just a few hundred yuan, and it's mandatory by law. Remember, it provides a safety net for the worst-case scenarios, giving you peace of mind while driving, but that doesn't mean you can ignore safety.
Compulsory traffic insurance is quite important for family safety. It mainly covers medical expenses and compensation for others injured in accidents you cause while driving, such as hospital bills or property damage. However, it doesn't cover your own belongings or injuries. As a mother, I always remind my family to purchase this insurance properly, so that in case of hitting pedestrians or vehicles, compensation can be handled promptly to avoid lawsuits. With children in the car, it's even more crucial to ensure proper coverage and not risk big troubles by saving small money.
