What is the Coverage of Compulsory Auto Insurance?

[ElisaLynn]

Vehicle compulsory insurance coverage includes: compensation limits for death and disability, and no-fault death and disability compensation limits, which cover funeral expenses, death compensation, transportation costs incurred by the victim's relatives for funeral arrangements, disability compensation, disability aid equipment costs, nursing expenses, rehabilitation fees, transportation fees, living expenses for dependents, accommodation fees, lost wages, and mental distress compensation that the insured is liable for as per court judgment or mediation. Compulsory insurance liability: If the insured causes a traffic accident while using the insured vehicle, resulting in personal injury, death, or property loss to the victim, and the insured is legally liable for the damages, the insurance company will compensate within the specified limits for each accident as agreed. Exclusions: The insurance company is not responsible for compensation or advance payments. Losses caused intentionally by the victim; Losses to the insured's own property or property on the insured vehicle; Losses caused by the insured vehicle's traffic accident, such as business interruption, vehicle downtime, power outage, water outage, gas outage, production halt, communication or network interruption, data loss, voltage fluctuations, etc., as well as depreciation of the victim's property due to market price changes, loss of value after repairs, and other indirect losses; Arbitration or litigation costs and other related expenses arising from traffic accidents.

[Omar]

Compulsory auto insurance is mandatory by law and must be purchased, primarily covering losses caused to others. In case of an accident where you hit someone, this insurance compensates for the other party's personal injuries and property damage. The personal injury coverage includes medical expenses, funeral costs, etc., with a maximum payout of 121,000 RMB. For property damage, such as damaging someone else's car or belongings, the maximum compensation is 2,000 RMB. This insurance does not cover repairs to your own vehicle or your own injuries—it only protects third parties. Many mistakenly believe that compulsory insurance covers everything, but its limits are actually quite low, especially in big cities where accident costs can easily exceed them. It's advisable to supplement it with commercial insurance. As a seasoned driver with years of experience, I've seen many cases where people faced fines for not having compulsory insurance. Having it also speeds up accident resolution, protecting others and your own wallet. Remember, you can only drive after purchasing this insurance—it's the law. Otherwise, getting caught by the police can lead to serious trouble. Make sure to renew it regularly and don’t wait until it expires to regret it.

[LeCharlotte]

Driving requires compulsory insurance, which is a state-mandated coverage that pays when you hit someone else. For instance, if you injure someone, it covers medical expenses and compensation, with a total limit exceeding 120,000 yuan. If you damage someone else's car, it pays for repair costs but is capped at 2,000 yuan. Compulsory insurance only covers third parties, not your own injuries or vehicle damage. I think it's pretty basic—premiums are low, but the coverage is limited and often insufficient in an actual accident, so additional commercial insurance is needed. As an ordinary driver, I've seen newcomers neglect this, leading to compensation disputes that waste time and cost extra. My advice: don’t relax after buying compulsory insurance—regularly check your policy’s validity, and safe driving saves the most money.

[AngeloFitz]

The compulsory insurance coverage focuses on third-party losses, including personal injury compensation such as medical expenses and death benefits, with a maximum of around 120,000 yuan; property damage like vehicle damage is capped at 2,000 yuan. This insurance does not cover the driver themselves, which is an important point to be aware of. I feel it's crucial for family drivers—in case of an accident, compulsory insurance can help cover the other party's costs, preventing financial strain on your own family, especially when medical bills are involved. However, the coverage limits are often insufficient, as urban accident compensations frequently exceed them, so combining it with commercial insurance offers greater peace of mind. I always remind my family to renew their policies on time and not wait until an accident happens to scramble. Safety first—compulsory insurance is a legal shield.