What does compulsory vehicle insurance cover?
3 Answers
The compulsory insurance for vehicles covers personal injury, death, and property damage to victims. The following is additional information: Legal basis: Compulsory Traffic Accident Liability Insurance for Motor Vehicles refers to a mandatory liability insurance where the insurance company compensates for personal injury, death, and property damage to victims (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured motor vehicle, within the liability limits. Compulsory Insurance: The full name of Compulsory Insurance is 'Compulsory Traffic Accident Liability Insurance for Motor Vehicles,' which is a mandatory liability insurance where the insurance company compensates for personal injury, death, and property damage to victims (excluding the vehicle's occupants and the insured) caused by road traffic accidents involving the insured motor vehicle, within the liability limits.
When it comes to compulsory vehicle insurance, I recall my years of driving experience. This thing, also called compulsory traffic insurance, is mandatory coverage required by the state, primarily covering third-party liabilities in accidents. Simply put, if you accidentally hit someone or damage their property on the road, it pays for the compensation. Specifically, it includes three parts: up to 110,000 yuan for personal injury or death, 10,000 yuan for medical expenses, and 2,000 yuan for property damage, with a total cap of 122,000 RMB. However, it doesn't cover people in your own vehicle or damage to your own car at all—a point many overlook! My friend rear-ended an electric bike last year, and thankfully, the compulsory insurance covered the other party's medical bills, saving thousands in disputes. I advise beginners not to skimp—pair it with commercial auto insurance for more comprehensive coverage. Don’t delay renewing it annually; if it lapses, you’ll not only have to pay back premiums but also face a fine of 100–200 yuan. I always remind myself to handle it early. For older cars, the premium is lower, but the coverage limits remain the same.
As parents with two children, I pay special attention to compulsory insurance. It essentially protects others' safety—compensation for victims in case of an accident, including death/disability, medical expenses, and property damage (up to 122,000 yuan). However, it doesn't cover ourselves or family members, which makes me a bit uneasy. Every time I take the kids out, I feel this alone isn't enough, so I added passenger insurance. The premium is low, just a few hundred yuan a year, but it can prevent major troubles. I remember when a relative's car hit a wall, the compulsory insurance didn't cover their own vehicle damage, and they had to pay tens of thousands out of pocket for repairs. I recommend that commuters also consider expanding third-party liability coverage to over 500,000 yuan when purchasing, as urban road conditions pose higher risks. Timely renewal is also crucial—don't procrastinate until the end of the month and forget. Safety comes first; don't risk it to save a little money.
