Using 2011 China Household Finance Survey (CHFS) data, this paper investigates the effects of Guanxi on households’ commercial insurance purchasing and insurance compensations. It is found that as Guanxi index increases by 1%, the probability of purchasing commercial insurance increases by 0. 3% approximately, and the probability of receiving insurance compensation increases by 0. 06%. In addition, the four Guanxi sub-indices have different influences on households’ insurance purchasing behavior. Moreover, Guanxi mainly affects the purchasing of life and property insurance rather than pension and health insurance. Finally, it is found that Guanxi can influence households’ insurance purchasing and compensation through the social interaction channel.