Compulsory Traffic Insurance Bids Farewell to Fixed Pricing: Premiums May Halve for Compliant Drivers from June 1st, Double for Frequent Claimants
According to reports, the 20-year-old fixed premium model for compulsory traffic insurance is about to become history. The National Financial Regulatory Administration, the Ministry of Public Security, and the Ministry of Transport jointly issued a notice that, starting June 1, 2026, a new floating premium mechanism for compulsory traffic insurance will be implemented nationwide, and premiums will no longer be “one-size-fits-all.” Driving habits and traffic violations will directly affect payment amounts, with safe drivers enjoying significant discounts and high-risk drivers facing premium increases.
Under the new regulations, the basic premium for passenger cars with 6 seats or less remains at 950 yuan, and the final premium will fluctuate based on the no-claim discount factor and regional difference factor.
Owners with no at-fault accidents and no serious violations for three consecutive years or more can see their premiums reduced to as low as 475 yuan, equivalent to a 50% discount. Frequent claimants may pay premiums as high as 1900 yuan, achieving precise adjustment based on “rewarding the good and punishing the bad.”
Premium fluctuations are closely linked to the number of claims and traffic violations. If two or more at-fault accidents occur in the previous year, the premium will increase by 10%; three claims will increase it by 50%; and five or more claims will reach the premium cap.
Serious violations such as drunk driving, driving under the influence, and hit-and-run will incur an additional surcharge of 5% to 30%, creating economic penalties and compelling drivers to comply with traffic laws.
This reform is not about reducing protection, but about comprehensively improving quality.
The liability compensation limits for compulsory traffic insurance are also being increased accordingly. The compensation limit for death and disability will increase from 180,000 yuan to 200,000 yuan, the compensation limit for medical expenses will increase from 18,000 yuan to 20,000 yuan, and the total liability limit will increase from 200,000 yuan to 222,000 yuan, strengthening the ability to cover accidents and benefiting all traffic participants.