The Road Traffic Safety Law stipulates that motor vehicles shall be subject to compulsory third-party liability insurance system, and a social assistance fund for road traffic accidents shall be established. It is a common practice in developed countries to use compulsory insurance to solve traffic accident damages and reduce traffic safety violations and traffic accidents through floating premiums. Implementing compulsory motor vehicle third-party liability insurance and establishing social assistance fund for road traffic accidents to pay for the rescue expenses of the injured in traffic accidents are of positive significance for saving the lives of the injured, reflecting the respect of society for the right to life and reducing social contradictions; At the same time, the compulsory motor vehicle third-party liability insurance is linked to the motor vehicle driving safety performance, and the rate fluctuates up and down. Using economic leverage to control the occurrence of traffic accidents is not only conducive to standardizing the insurance market, but also to the prevention of traffic accidents, promoting road traffic safety and social stability.