Buy car insurance and what car owners need to pay attention to


For Vietnamese people, a car is an asset of great value, so car owners also need to be fully equipped with papers as well as car insurance to help protect their assets in the most active way. . Why should you buy? car insurance? What types of auto insurance are there?

I. Should I buy car insurance?

The current traffic situation in Vietnam is increasingly complicated, the roads are crowded, the infrastructure is not good, … so in the process of circulation, it will be difficult to avoid collisions, accidents, and breakdowns. Every time a car encounters such problems, the owner has to spend a large amount of money.

Insurance is a guarantee, payment for unexpected risks that may occur in the future. An insurance contract is a commitment between a vehicle owner and an insurance company, whereby the insurance company will compensate customers for damage in accordance with the provisions of the contract.

Therefore, the purchase car insurance Like transferring risks, helping car owners reduce financial burden, bring a sense of peace of mind.

Car insurance helps reduce the financial burden for policy beneficiaries (illustration image)

II. Types of car insurance

In Vietnam, there are currently popular forms of insurance such as:

Insurance (mandatory) for civil liability of motor vehicle owners;

Insurance for the civil liability of the vehicle owner for the goods transported on the vehicle;

Motor vehicle physical damage insurance;

Insurance for occupants and co-driver accidents.

In which, civil liability insurance of motor vehicle owners is a mandatory type, which all individuals or organizations that own cars must buy. The remaining types are voluntary, car owners can buy or not.

1. Automobile civil liability insurance

Automobile civil liability insurance (Compulsory car insurance) is a type of civil liability insurance for damage to property, body and life of a third party caused by the fault of the car owner (the insured).

Car owners are required to buy civil car insurance, this is the type of insurance required when participating in traffic. If there is no civil liability insurance, car owners will be fined 400,000 – 600,000 VND according to Article 21 of Decree 100/2019.

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Car owners are required to buy automobile civil liability insurance. If not, they will be fined 400,000 – 600,000 VND (illustration).

Insured object:

Motor vehicle owners participating in traffic and operating in the territory of the Socialist Republic of Vietnam.

Insurance enterprises are allowed to deploy compulsory insurance for civil liability of motor vehicle owners in accordance with law.

Agencies, organizations and individuals involved in the implementation of compulsory insurance for civil liability of motor vehicle owners.

Cases not covered by insurance include:

Damaged person / Driver intentionally causes an accident or intentionally causes additional damage.

The driver fled after causing the accident.

The driver does not have a valid driving license in accordance with the law.

Damage caused by property being stolen/robbed/lost in the event of an accident.

Damage to money and valuable papers, gold and silver, rare items, etc.

Cases of earthquakes, terrorism, war, etc.

Coverage: Damage to property, body, life to a third party caused by the fault of the vehicle owner (the insured), occurring in the territory of Vietnam.

Insurance compensation:

1, The level of insurance liability for damage to health and life caused by motor vehicles is VND 150 million for one person in an accident.

2, Level of insurance liability for property damage:

Due to cars; tractor; trailers or semi-trailers towed by cars or tractors; Special-use motorbikes according to the provisions of the Road Traffic Law cause 100 million VND in an accident.

Insurance period: 1 year (maybe less than 1 year depending on the specific content written on the Certificate of Civil Liability Insurance).

Compulsory car insurance premiums:

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Compulsory insurance premium for civil liability of motor vehicle owners excluding VAT (excerpt from Appendix I, Circular No. 04/2021/TT-BTC dated January 15, 2021 of the Minister of Finance).

In addition to compulsory auto insurance, there is also voluntary auto civil liability insurance:

Voluntary auto civil liability insurance is a type of insurance similar to compulsory insurance (insured subject matter, insurance period, etc. are similar to compulsory civil liability insurance) but limited liability level (compensation level) is higher.

Each insurance company will have different product packages, the common compensation level ranges from 30-400 million VND/case. The price of this type of auto civil liability insurance also depends on the product package of each company, which ranges from 200,000 to 20,000,000 VND/year.

2. Car material insurance

Vehicle physical insurance (body insurance) is insurance for physical damage to the vehicle including bodywork, machinery and other equipment, which occurs due to an unexpected accident beyond the control of the vehicle owner. .

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Car insurance is also known as body insurance. This is voluntary insurance.

Insured objects: When the car owner buys auto body insurance, the insured object includes the body, machinery and equipment on the vehicle.

Covered coverage:

Damage to vehicle material (body, machinery, other equipment) due to an unexpected accident in the territory of Vietnam.

Damage caused by collision, collision, toppling, fire, explosion, etc.

Force majeure accidents such as lightning strikes, floods, earthquakes, etc.

Stolen, completely robbed.

The insurance company will also pay for necessary and reasonable cases such as towing the car to the repair place to serve to limit the loss.

Insurance compensation: The level of compensation for repair, replacement or total loss will be paid by the insurance company depending on the specific cases.

Insurance period: 1 year (maybe less than 1 year if specified on the Certificate of Civil Liability Insurance).

Cases not covered by insurance:

Wear and tear, natural damage, repair, devaluation, due to the operation of the vehicle;

Vehicles that have not posted points as prescribed;

Vehicle subject to civil dispute;

Vehicle stolen parts;

Vehicle damaged due to flooding.

Car insurance price: Usually calculated as a percentage of the insured amount. The rate of physical insurance premium for cars depends on factors such as vehicle usage time, vehicle type (number of seats, business/non-business vehicle),… Each insurance company will have The price list of hull insurance varies.

In order to increase the coverage of car physical insurance, companies often offer an additional package of upgraded car insurance products such as:

Parts theft insurance;

Car insurance flooded, water damage;

Car service interruption insurance;

Optional repair garage;

Choose the level of compensation with deductible,…

3. Accident insurance for occupants

When buying car insurance under this package, all occupants of the vehicle will be compensated for damage if they are injured or die while in the vehicle while the vehicle is in traffic.

Subjects insured: Drivers, all occupants of the vehicle while participating in traffic.

Coverage: Damage to the body, life of the insured due to an accident while sitting on the vehicle, getting on or off the bus, crossing the bridge / ferry / ferry, etc.

Insurance coverage: The insured person’s death due to an accident is paid the full sum insured. The insured person’s permanent or temporary injury due to an accident is paid a percentage of the sum insured.

Insurance period: 1 year

Cases not covered by insurance:

The Insured intentionally causes an accident;

The Insured has an alcohol concentration, uses stimulants in a prohibited manner as prescribed by law;

The insured person is sick, food poisoning, …

Car accident insurance price: Usually calculated as a percentage of the insured amount for 1 person, the premium rate ranges from 0.1 to 0.5%. The insurance amount for this form is common from 20 to 45 million VND/person.

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When buying this insurance, all occupants of the vehicle will be compensated for damage during the vehicle’s participation in traffic (illustration).

4. 2-way car insurance

In fact, two-way auto insurance is not a type of auto insurance, but this is a term used to refer to the purchase of two types of insurance at the same time, including: auto civil liability insurance (mandatory) and auto insurance. car material (voluntary).

When buying 2-way car insurance, car owners will be insured in two forms (mandatory insurance and physical insurance) when an accident occurs due to the fault of the car owner. Accordingly, the subject of insurance, the level of compensation, the scope, … will be applied as mentioned above.

Should I buy 2-way car insurance? 2-way insurance for cars is very necessary, models with great value, luxury cars should buy more. This will help car owners reduce risks when moving, and be supported in situations out of control. If in the worst case there is no insurance, your benefits will not be guaranteed, which can cost a lot of money.

The price of buying 2-way car insurance will depend on each insurance company, vehicle type, vehicle condition, …

III. Where to buy car insurance?

Currently, on the market, there are many insurance companies, depending on each insurance company, the type of insurance will have different discounts, incentives and attractive policies. Auto users can directly contact insurance companies to hear the most specific advice, thereby making a choice for themselves. Some popular units in Vietnam such as:

Bao Viet auto insurance;

PVI auto insurance;

Liberty auto insurance;

PJICO auto insurance;

MIC Military Auto Insurance;

Auto Insurance Post Office PTI,…

What to do when there is a traffic accident?

To ensure their rights in the event of an accident, the car owner needs to do the following to meet the requirements of the contract or insurance company:

– First, you need to stay calm and immediately notify the insurance unit, the police, and fully declare the information.

– Preserve the accident scene and take photos to ensure the accuracy of the incident, the details of the incident, help protect your rights and not be denied by the insurance company.

– Do not move, disassemble or repair the property without the approval of the insurer.

– Provide complete information and documents according to the profile.

Motor vehicle insurance claim file

Documents to be prepared to make a claim to the insurance company include:

Driving license;

Accident declaration;

A copy of the certificate of insurance, the certificate of technical safety and environmental protection of the road vehicle, the certificate of vehicle registration;

In case the severity of the accident and the presence of the relevant authorities, it is necessary to add the vehicle inspection record and the initial investigation results, the police investigation conclusion, the related vehicle inspection record. related to the accident, the record of handling the accident.

In case of a dispute in court, a court judgment or decision is required.

Documents confirming loss of property or people due to accidents (documents of expenses for car repair, medical examination and treatment, …)

Above is a summary of what you need to know about car insurance to help readers gain more useful knowledge before buying car insurance. Based on economic conditions, car model, car value, living area, … that car owner should prioritize which type of insurance to use accordingly.

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