Buy enough third-party liability coverage: the compulsory traffic insurance (交强险) limits are set nationwide and are not high, and anything above them comes out of your own family's pocket
- High value
- Evidence A
- Saves money
- Costs a lot
- Takes minutes
- No willpower
In plain words
When you are at fault, compulsory traffic insurance pays at most three items: 180,000 (18万) CNY for death and disability, 18,000 (1.8万) CNY for medical expenses, and 2000 CNY for property damage. The three are counted separately and cannot be moved from one to another. Compensation for injuring someone easily exceeds these limits, and the excess is paid from your own family's pocket, so buy enough commercial third-party liability insurance.
Mentioned in
- Buy insurance only for losses you can't bear yourself, and cover losses you can bear with your emergency fund
- Don't stage accidents or exaggerate losses to cheat on a claim: this is the crime of insurance fraud, and the people who testify for you, repair your car or assess your loss are convicted with you
Translated from the Chinese original. Original book, section 5, tip 26. This section is about money and spending. It is general information, not financial or investment advice. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer