Car Insurance in China

There is a variety of car insurance products in China. When you purchase a new car the insurance is already included, though it's only basic coverage!

Below you can find examples of the insurance policies and their coverages.

Traffic compulsory insurance - Less than 5 seats RMB 1050, more than 6 seats RMB 1100.

This is a compulsory insurance for all vehicles. The insurance company will cover third party in case of an accident.

According to the policy, property and loss of life, except the owner of the car and passengers on board, are covered. This however is not entirely true, there is a limitation on the coverage!

Maximum compensation: RMB 60,000.
This insurance company will compensate whoever is responsibility for the accident.
The compensation will be 20% of the maximum compensation (RMB 60,000 x 20%= 12,000) if the vehicle's driver has no responsibility in the accident. This is actually very uncommon as all parties are usually at least partially blamed by traffic police (the famous 10% rule, you're always 10% guilty).

Third party liability insurance.

The same kind of insurance as above
Since the traffic compulsory insurance only covers 60,000 RMB, a third party liability insurance covers more.
You can chose different levels of coverage; RMB 50K, 100K, 150K, 200K, 300K, 500K, 1000K.
As a froeigner you should always chose the maximum coverage of RMB 1.000.000,-, the reason being that the value of human life in Shanghai is above 1.000.000,- now and you'd have to pay the difference between the coverage and what the court orders you to pay. Be aware that the new law (2009) makes it possible to freeze your assets and prevent you from leaving China until the payment is settled!

Car Damage Insurance

Extra insurance in case of damages to your car not covered by the compulsary insurance.

Car Theft Protection Insurance

The value of a stolen car is decided by the insurance company, which means you're never getting the full second hand price of your car!

All the above insurances are the basic ones offered in Shanghai. You should however, buy extra insurance to make sure you're covered properly in case of an accident.

Liability for Passengers and Driver Insurance

This insurance covers injury to on board driver and passengers. Be aware that there is a limitation to this product as well!

Vehicle Deficiency Waiver

All the above insuraces come with a 20% waiver, which means you only have 80% coverage in case of an accident. This insurance will cover the waiver to ensure a 100% coverage.

Extra coverage if needed

Breakage of Glass Insurance.

Car Body Scrape Insurance

Spontaneous Combustion Insurance



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