On 30 march 2026, the general directorate of financial supervision, in conjunction with the ministry of public security and the ministry of transport and communications, issued an official circular specifying the mechanism for all-round landings throughout the country, starting at 0000 hours on 1 june of this year, for the exchange of high-risk rates. The harmonized fixed-charge model of $950 for private vehicles, which has been in operation for many years, has been formally abolished, and risk insurance has entered a completely new fee-based phase, which is based on driving risk and rewards and penalties。
The core rules of the reform are simple and straightforward: the more stable the driver's record, the lower the premium; and the higher the liability and serious violations, the higher the contribution costs. The annual safe-rider owner of the six cars could be reduced to a minimum of $475 and cut directly in half, while the high-risk owner of the vehicle, who was in frequent distress and driving in violation of the law, had a premium of up to $1,900. Hundreds of millions of vehicle owners ' premium gaps have widened completely, leaving aside the unfair distribution of costs between high-risk drivers。
I. Reformed security: the three core rights remain the same, and the owners do not have to worry
Every time a vehicle insurance policy is adjusted, a number of drivers are concerned about the rise in premiums and the loss of water, and this reform is entirely without concern. The official document makes it clear that this time only adjustments are made to the way contributions are accounted for, and that the owner's core security interest remains fully stable。
First, the basic premium standard remains the same. Under six non-operating sedans, five suvs and all types of private cars, the initial basic premium is still $950; between six and nine domestic cars are $1,100; ordinary two-wheeled motorcycles are $120 and national standards are uniform and insurance companies are not allowed to make private price adjustments。
Second, the level of risk insurance has steadily increased. The total amount of compensation for accidents with liability has been increased from $200,000 to $222,000, of which compensation for death and disability has been increased to $200,000, compensation for medical expenses has been increased to $20,000, compensation for property losses has been maintained at $2,000, the liability limit has been increased simultaneously, and the base security of the owner has been strengthened。
Thirdly, the statutory mandatory nature of insurance remains unchanged. Risk insurance remains a mandatory condition for roading and annual inspection of vehicles. Failure to comply with the requirements for roading will expose them to a penalty of withholding and double the premium. Reforms will only optimize pricing rules and will not alter statutory insurance requirements。
Ii. Core change in reform: elimination of flat fixed prices and direct linkage between premiums and driving behaviour
The biggest adjustment to this reform was to break the one-size-fits-all model of good and bad car owners ' premiums and to introduce a uniform national rate of reward and penalty for bad floating. The final premium for risk insurance is no longer a fixed value and the accounting formula is harmonized as: the final premium = the base premium = the no-compensation preferential factor x the regional risk factor x the traffic violation factor。
The floating premium is related only to its own driver's performance, the level of risk in the area, the price of the vehicle, the age of the brand, ordinary minor violations, and the record of commercial risk insurance, which is accurately applied to the accounting of the cost of personal vehicle safety。
Disproportionate preferences for high-quality drivers: no long-term risk and reduced premiums
The greater the discount on premiums, the greater the length of successive unaccountable accidents, the more cost-effective the long-term safe driving will be, as in the case of the six mainstream cars:
For one year, the contribution was 10 per cent lower and $855 paid
(b) two consecutive years of no-account accidents, a 20 per cent fall in premiums and a contribution of $760
In three or more consecutive years and for more than three years, the premium fell by 30 per cent and paid $665。
The country is divided into five regional categories, with four categories of low-risk areas: inner mongolia, hainan, qinghai and tibet, which for three consecutive years are entitled to 50% discounts and an annual contribution of only $475; and high-risk areas such as beijing, shanghai, jiangsu and zhejiang, where quality drivers also enjoy 70% discounts, with most of the regions being in between。
High-risk vehicle owner billing up: high number of risks and significant increase in contribution costs
Corresponding to the preferences of high-quality drivers, the new regulations are clear on the amount of money to be paid for vehicles that are frequently subject to liability and serious traffic violations, and are also accounted for by six domestic vehicles:
(a) one case of liability, all benefits being paid out and a premium restoration basis of $950
Two responsible accidents involving a 20 per cent increase in premiums and the payment of $1140
Three responsible accidents with a premium of 50 per cent and a payment of $1425
Five or more responsible incidents resulted in a direct doubling of the premium to $1,900。
In cases of serious offences, such as fatal traffic accidents, drunk driving and hit-and-run, the premium rises directly to the maximum of $1,900。
New rules for the welfare of the population: no liability for accidents, no benefit for normal settlement
This is the highest level of owner recognition. After the introduction of the new regulations in 2026, the traffic police decided that the accident in which the owner was not responsible and the insurance company issued the certificate of non-responsibility, regardless of whether or not it was normal to settle the claim, did not take into account the number of personal accidents, without interruption of the continuous record of accidents and without prejudice to the benefit of subsequent premiums. A definitive solution to the issue of the previous unaccountable recovery of the owner of the vehicle, who had lost the premium discount in vain, was no longer a matter of concern。
Iii. Comparison of real-life cases: good drivers save money, risk owners spend more
Case one: old drivers in years of zero accidents, year-to-year savings on safe driving
Mr. Jiang xie yi chun, aged 52, has been driving five domestic cars for many years, without any responsible traffic accidents for five consecutive years. Locally, it is a medium-risk accounting area, with a fixed annual contribution of $950 in previous years. Following the implementation of the new regulations, mr. Wang is eligible for a long-term no-risk benefit, with only $665 per year and a direct saving of $285 per year. If insured in low-risk areas, the equivalent driving record is only $475 per year and the premium is reduced by half directly。
Case ii: new recruits are in high risk and new insurance premiums have increased dramatically
Young drivers, li, have been driving for a short period of time, have not had sufficient experience driving, have had three consecutive accidents of culpability within the year, and have recorded traffic violations in the red light. Prior to the introduction of the new regulations, the annual risk exposure was fixed at $950. With the new regulations, the rate of premium rises 50 per cent on the basis of the number of exposures, requiring a contribution of $1425 per year, which is $475 more than in the past, and the subsequent premium increases。
Iv. The owner must know the practical details, eat the new rules without losing it
New and old policy interface rules
All strong risk insurance policies in force before 1 june are implemented in accordance with the old rules, after the expiration of the policy, and the new floating rates are automatically replaced without the need for early withdrawal by the owner and normal processing of the expiry date。
New energy is consistent with fuel vehicle standards
New energy vehicles and fuel trucks are subject to the same rules for insurance premiums, floating discounts and no differential treatment。
An ordinary minor violation does not affect the premium
Major violations such as drunk driving alone, hit-and-runs, severe speeding, etc., affect the movement of premiums, which are not accounted for by day-to-day minor violations such as stopovers, pressure lines, security belts, etc。
Longer-term renewal policy is more economical
Eligible owners are eligible for up to three-year lump-sum insurance, with a constant lockout of the no-risk benefits and no annual double-checking。
It doesn't add up
The national system has accumulated the number of years of insurance without liability, foreign insurance, cross-provincial travel, and safe driving records continue to be valid without prejudice to preferential access to premiums。
V. Summary of new provisions: safe driving is a cost-saving and more equitable costing rule
The core of the 1 june strong risk reform was to match premiums and vehicle risks. Safe driving is a real premium and reduction; frequent and illegal driving entails a correspondingly higher cost. It would be more equitable to direct owners to driving and safe travel, as well as to make the payment mechanism more equitable。
For all owners, low premium benefits can be granted on a permanent basis without obfuscation of fixed premiums and daily compliance with regulations and safe driving. Security not only guarantees safe travel, but also reduces vehicle spending and saves money。
Interactive topic: how many years has your vehicle been unrecorded? When the new rules are in place, will your insurance premiums rise or fall? You are welcome to share your comments in the comment area。
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