Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles in China. It is derived from vehicle purchase surcharges. The basic standard of the current vehicle purchase tax law is the Provisional Regulations of the People's Republic of China on Vehicle Purchase Tax, which came into effect on January 1, 2001. Taxpayers of vehicle purchase tax are units and individuals who purchase (including purchase, import, self-produced, donated, awarded or otherwise obtained and used) taxable vehicles. The scope of taxation is automobiles, motorcycles, trams, trailers and agricultural transport vehicles. The tax rate is 10%. The calculation formula of tax payable is: tax payable=taxable price × tax rate. (From January 20 to December 31, 2009, 5% of the purchase tax will be levied on passenger cars with a displacement of 1.6 liters or less. From January 1 to December 31, 2010, 7.5% of the purchase tax will be levied on passenger cars with a displacement of 1.6 liters or less.)

The third party liability insurance refers to the economic liability that should be borne by the insured according to law and the insurance company is responsible for compensation when the insured or the driver allowed by the insured has an accident during the use of the insured vehicle, which causes the third party to suffer personal injury or direct property damage. At the same time, if the insurance company agrees in writing that the insured has incurred arbitration or litigation costs, the insurance company shall compensate beyond the liability limit, but the maximum amount shall not exceed 30% of the liability limit. Because compulsory traffic insurance has a low compensation for the property loss and medical expenses of the third party, we can consider purchasing the third party liability insurance as a supplement to compulsory traffic insurance.

Vehicle loss insurance is the most widely used type of insurance in vehicle insurance. It is responsible for compensating the loss of its own vehicles caused by natural disasters and accidents. The insurance company can pay for the repair, whether it is a minor scratch or a serious damage.

The insurance company shall be liable for the loss of the insured vehicle caused by the following reasons when the insured or the qualified driver allowed by the insured uses the insured vehicle: 1. Collision and overturn; 2. Fire and explosion; 3. Collapse of external objects, falling of aerial objects, and parallel falling of insurance vehicles during driving; 4. Lightning strike, storm, tornado, rainstorm, flood, tsunami, ground subsidence, ice subsidence, cliff collapse, avalanche, hail disaster, debris flow, landslide; 5. The ferryboat carrying the insurance vehicle suffers from natural disasters (only limited to those who are attended by the driver).

In the event of an insured accident, the insurance company shall be liable for the reasonable expenses incurred by the insured or the qualified driver allowed by the insured to take rescue and protection measures against the insured vehicle. However, the maximum amount of compensation for such expenses shall be limited to the limit of liability.

It means that if the whole vehicle of the insurance vehicle is stolen, robbed or robbed, and it is confirmed by the criminal investigation department of public security at or above the county level that it has not disappeared for a certain period of time, the insurance company will compensate within the insurance amount. If some parts of the vehicle are stolen, such as tires, property in the vehicle, and items in the trunk are lost, the insurance company will not be responsible for compensation. However, the insurance company is generally responsible for compensation for the damage and loss of parts on the insurance vehicle during the period of theft and robbery.

The whole vehicle theft and rescue is an additional risk, which can be covered only after the vehicle loss insurance is covered.

Be responsible for compensating the loss of the vehicle itself caused by the failure of the electrical appliances, lines and oil supply system of the vehicle and the fire caused by the reason of carrying goods. In case of partial loss of the vehicle, the repair cost shall be compensated according to the actual repair cost. If the whole vehicle is burned or has lost its repair value due to spontaneous combustion, compensation shall be made according to the actual value of the vehicle at the time of accident, but not exceeding the liability limit.

During the use of the insured vehicle, due to a traffic accident with non motor vehicles and pedestrians, the other party's casualties and direct damage to property are caused, but this loss is not the fault of the insured, but is caused by the other party's responsibility. However, the insurer's refusal to compensate is unsuccessful, and the insurer has paid the other party but cannot recover the expenses, The insurance company shall be responsible for compensation according to the Measures for Handling Road Traffic Accidents.

No fault liability insurance is an additional insurance, which can be covered only after the third party liability insurance is covered.