Vehicle Insurance in China

General information on taking out an insurance policy in China, with details on insuring a vehicle (options from third party to all risks) and making a claim...

Both third party liability and accident insurance are compulsory in China, and are known as compulsory traffic insurance. This compulsory insurance covers the injury or death of a third party in the event of an accident. Financial compensation is only awarded up to a fixed amount; it is advisable to check the exact amount of coverage provided before committing to a policy.

As of February 2012 the Chinese government agreed to open the auto insurance market to foreign companies, which means that it is no longer a requirement for a Chinese insurance policy to be taken out.

Cover beyond the compulsory traffic insurance is known as commercial insurance.

In the Event of an Accident

The police assess the scene of the accident and draw up a responsibility identification notice. This is needed to make a claim from an insurance company. It should be noted that in China it is not unusual for the party whose car caused any injuries inflicted in an accident to pay for the resulting medical costs, irrespective of fault.

In collisions between vehicles and pedestrians, the driver is always considered to be the responsible party, regardless of the actions of the pedestrian.