What Types of Insurance Does Compulsory Traffic Insurance Cover?

[Tobias]

Compulsory traffic insurance for vehicles does not differentiate between types of coverage; it is a mandatory insurance system stipulated by national law. Below is relevant information about motor vehicle insurance: 1. Definition of Motor Vehicle Insurance: Motor vehicle insurance, also known as auto insurance (abbreviated as car insurance), refers to a type of commercial insurance that covers liability for personal injury, death, or property damage caused by natural disasters or accidents involving motor vehicles. 2. Development of Motor Vehicle Insurance: The true development of motor vehicle insurance occurred after World War II. On one hand, the widespread use of automobiles made road accidents a common social hazard. On the other hand, many countries included third-party liability insurance for various motor vehicles, including cars, within the scope of compulsory insurance. As a result, motor vehicle insurance has become a universally significant insurance business worldwide.

[OWalker]

Compulsory Traffic Insurance (CTI) is a mandatory insurance in China that covers the costs you need to compensate others if you cause an accident while driving. For example, if you injure someone, it covers medical expenses, death or disability compensation, etc. It also covers property damage, such as damaging someone else's car or roadside objects. However, it does not cover damage to your own vehicle or your own injuries, so relying solely on this insurance is insufficient. I always advise my friends to supplement it with commercial auto insurance, such as increasing the coverage limit for third-party liability insurance, just in case. Safety comes first, especially when traveling with family. In case of an accident, it at least provides a safety net to protect innocent people. Remember, not purchasing CTI can result in fines or even vehicle impoundment by traffic police—don’t risk saving a small amount of money.

[DelAdriel]

When I first started learning to drive, I didn't know what compulsory traffic insurance was either. Basically, it's insurance the government makes you buy, and its core purpose is to cover third parties in accidents. Specifically, it includes personal injury coverage—like compensating for death or injuries to others; medical expenses such as hospital bills and nursing fees; and property damage, like repairing cars or paying for streetlight repairs. But importantly, it doesn’t cover your own vehicle damage or personal injuries. I had a minor scrape once and realized its compensation has a cap, which is why people often buy additional commercial insurance to fill the gaps. In daily driving, this insurance helps you avoid more disputes and trouble. Imagine hitting a pedestrian without it—you'd have to pay out of pocket, which would be a huge financial burden.

[LeDamian]

Having driven for decades, I renew my compulsory traffic insurance every year. It covers your liability for harm caused to others, such as medical expenses for the injured and compensation for property damage, but it doesn't cover your own vehicle or personal issues. Simply put, if you hit someone, their medical bills and car repair costs are covered by it. I've seen new drivers suffer huge losses because they tried to save money by not buying it, and traffic fines also affect their credit. The reasonable approach is to purchase it as a foundation and supplement it with commercial insurance for comprehensive coverage, ensuring peace of mind when driving on the road.