Will the Compulsory Traffic Insurance Cover My Car If It's Flooded?

[LeErin]

Compulsory traffic insurance does not cover water damage to your car because it is designed to compensate third-party vehicles and individuals. To claim for vehicle damage, you must have purchased vehicle damage insurance. Compulsory traffic insurance is mandatory by law, and without it, you cannot legally drive on the road. Otherwise, according to the Road Traffic Safety Law, traffic management authorities can impound the vehicle, require the owner to provide the necessary documents or complete the required procedures, and may issue a warning or impose a fine ranging from 20 to 200 yuan. Compulsory Traffic Insurance for Automobiles: Compulsory traffic insurance, officially known as 'Compulsory Liability Insurance for Motor Vehicle Traffic Accidents,' is a mandatory liability insurance where the insurer compensates victims (excluding vehicle occupants and the insured) for bodily injury, death, or property damage caused by road accidents involving the insured vehicle, within the liability limits. Premiums are based on a nationally unified standard, though prices vary by vehicle type, primarily influenced by the number of seats. Compared to commercial third-party liability insurance, which has over 20 exemption clauses, compulsory traffic insurance covers a broader range, excluding only losses caused intentionally by the victim, the insured's own property damage, related arbitration and litigation costs, and certain indirect losses from accidents. Moreover, compulsory traffic insurance provides compensation within the liability limits regardless of fault, with no deductible or exemption rate. Introduction to Electronic Insurance Policies: An electronic insurance policy is a digital document issued by an insurance company using digital signature software and enterprise digital certificates that comply with the PKI system, bearing the insurer's electronic signature. An insurance policy, or policy for short, is the formal written proof of the insurance contract between the insurer and the insured. It must fully record the rights, obligations, and responsibilities of both parties. The content of the policy serves as the basis for both parties to fulfill the contract, and it is proof of the establishment of the insurance contract. Advantages of Electronic Insurance Policies: Saves paper resources by eliminating the need to print insurance proof labels; Offers time-saving convenience, unrestricted by time or location, with information accessible online anytime, quickly and easily; Allows for reissuance or resending, eliminating worries about loss, and provides options for printing or mailing if a physical copy is needed offline; Facilitates management by standardizing electronic records, making it easier for insurance companies and traffic police to manage vehicle insurance information.

[Eva]

I've encountered this situation before. I drove my old car to the riverside for fun, but a heavy rain flooded the car. I wondered if I could claim the loss under compulsory traffic insurance, but the insurance company later told me it wasn't possible. Compulsory insurance mainly covers compensation for others, such as injuring someone or damaging another vehicle—it doesn't cover damage to your own car at all. Flood damage is purely bad luck for the vehicle itself and requires separate vehicle damage insurance to resolve. If you only have compulsory insurance, you’ll have to pay out of pocket for flood repairs, which could cost tens of thousands. Now, I always check my insurance policy during car maintenance and recommend everyone spend a little extra to add vehicle damage or comprehensive insurance—it’s truly a safeguard. Especially during heavy rain seasons, always park on higher ground—don’t make my mistake of parking in low-lying areas.