China’s compulsory auto insurance coverage expands in 2025

China's compulsory motor vehicle liability insurance expanded coverage and strengthened risk protection in 2025, according to the National Financial Regulatory Administration.

As of the end of last year, the number of motor vehicles covered by the insurance nationwide reached 386 million, a year-on-year increase of 3.8 percent, while claims payments totaled 252.4 billion yuan (about 37.61 billion U.S. dollars), up 11.6 percent year on year, according to data released by the administration on Thursday.

As a mandatory coverage, its reach expanded steadily while playing a significantly larger role in safeguarding public welfare.

"In 2025, the proportion of compensation for personal injury accidents in total accident payouts rose from 16 percent to 18 percent, further highlighting the protective role of the compulsory motor insurance for a wide range of road users, including non-motorized vehicle drivers and passengers," said Wang Simiao, chief executive officer of Insurance Association of China.

Data from the Insurance Association of China shows that since the comprehensive auto insurance reform in 2020, the liability limit for the insurance has increased from 122,000 yuan to 200,000 yuan, providing traffic accident victims with more comprehensive medical treatment and financial compensation.

In terms of claims settlement, the insurance industry has leveraged digital tools such as video inspections and AI-powered damage assessment to accelerate the implementation of fast-track claims mechanisms.

At the same time, insurance companies have provided upgraded services to traffic accident victims, including hospital fast-track access and full advance payment of medical expenses, ensuring that victims receive timely medical treatment.

China’s compulsory auto insurance coverage expands in 2025

John Easterbrook, grandson of the late U.S. General Joseph Stilwell, has highlighted the importance of people-to-people exchanges in China-U.S. relations.

In a recent interview with China Media Group (CMG), he recalled Chinese President Xi Jinping's 2023 reply to his letter and said the Stilwell family has continued its legacy of promoting people-to-people exchanges for decades.

"President Xi wrote that General Stilwell is, and I quote 'an old friend of the Chinese people,' that the Chinese people will always remember this friendship and that the American and Chinese people were allies during the Fight Against (Japanese) Aggression during World War II. However, what resonated most for me was that people do indeed form the foundation of the China-U.S. relations, and people-to-people activities are a way towards better understanding, cooperation, and making the world a better place for future generations," said Easterbrook.

Easterbrook's remarks come as Xi is on a three-day state visit to the United States at the invitation of U.S. President Donald Trump. The trip follows Trump's state visit to China in May, the first by a U.S. president in nearly nine years.

General Stilwell’s grandson highlights power of US-China people-to-people ties