Essential Information About Installment Auto Insurance

Car insurance is a contract between the car owner and the insurance company. Accordingly, the insurance company will guarantee to compensate part or all of the damage that the car owner has to suffer due to incidents related to his car, such as accidents, fires, theft, natural disasters, etc.

According to a survey by JD Power (2024) in the 'Auto Insurance Study', the average cost of auto insurance accounts for about 1.5-2% of the vehicle's value per year in developed countries.

When deciding to buy a car on installment, many people often have difficulty understanding the requirements and benefits related to insurance. This article will provide detailed and specific information about Installment car insurance, helping you get an overview and better prepare for your decision.

Two-way auto physical insurance is mandatory

When buying a car on installments, two-way auto physical insurance is not only an option but also a mandatory requirement. This type of insurance includes:

• Liability Insurance: Covers you for damages you cause to third parties in the event of an accident.
• Vehicle physical damage insurance: Compensation for physical damage to the vehicle due to accident, natural disaster, fire, or theft.

Benefits of purchasing two-way physical insurance

Buying two-way physical insurance brings many important benefits:

• Physical damage compensation: In the event of an accident, the insurance company will cover the cost of repairing or replacing the vehicle, including damage caused by natural disasters or vandalism.
• Third party compensation: If you cause damage to someone else while using your car, the insurance company will pay their compensation costs.

According to research by the Insurance Information Institute (III, 2023) in the 'Auto Insurance Basics' report in the US, two-way insurance helps reduce financial risks by up to 78% for car owners in the event of an accident.

Cases eligible for compensation

When you own two-way physical insurance, you will be compensated in the following cases:

• Damage caused by collision with other vehicles.
• Damage caused by collision, overturning, or collision with other objects.
• Damage caused by fire or natural disaster.
• Car lost due to theft.
• Bodily injury after accident.

To ensure your insurance benefits, you need to immediately notify the insurance company and conduct an on-site assessment when an accident occurs.

Cases not covered by insurance

Although two-way physical insurance is very useful, there are also cases where compensation is not provided:

• Damage due to technical fault or natural wear and tear.
• Damage to tires or non-original parts.
• Losses that you fail to promptly report to the insurance company.

Cost of purchasing two-way physical insurance

The cost of purchasing two-way physical insurance depends on many factors such as vehicle type, time of use and insurance company.

• Average premium: For cars from 4 to 7 seats, the insurance premium ranges from 1 million to 2 million VND per year.
• Specific example: A car worth about 500 million VND will have an insurance premium of about 7 million to 10 million VND per year.

Procedure for purchasing insurance when buying a car on installment

The process of buying insurance when buying a car on installment includes the following main steps:

• Prepare documents: Including personal documents and financial documents.
• Choose an insurance package: Choose a package that suits the requirements of the bank or credit institution.
• File appraisal: Provide information related to the vehicle and loan for the insurance company to appraise.
• Premium payment: The premium is usually paid in one lump sum upon signing the contract.
• Sign the contract: Receive insurance certificate and complete the installment loan process.

Important notes when buying insurance on installments

When buying a car on installments and involving insurance, you need to note:

• No forcing to buy insurance: According to the regulations of the Ministry of Finance, forcing customers to buy non-compulsory insurance is a violation of the law.
• Choose a reputable insurance company: Make sure you choose a company with a good reputation to ensure your interests are best protected.

Understanding car insurance installments not only helps you comply with the law but also gives you more peace of mind when using your vehicle. Carefully consider the benefits and costs to make the most appropriate decision for yourself and your family.

FAQ – Frequently Asked Questions

1. How to choose the right insurance package?

Consider the value of your car, how often you use it, and where you drive. If you frequently drive in a crowded city, consider comprehensive coverage.

2. What are the insurance contract terms to pay attention to?

Pay attention to coverage, deductibles, and exclusions. Read the terms of compensation and processing times carefully.

3. What additional insurance should I purchase?

In addition to two-way physical insurance, you can purchase passenger accident insurance or theft insurance parts for added protection.

4. How to handle disputes with insurance companies?

Gather sufficient evidence, contact the insurance regulator or seek the assistance of a lawyer to protect your rights.

5. The most reputable auto insurance sales address in HCM?

Thanh Phong Auto is not only famous for its car repair and maintenance services but also one of the leading addresses in Ho Chi Minh City in the field of sales. car insuranceWith many years of experience in the industry, Thanh Phong Auto has established close cooperative relationships with prestigious insurance companies such as Bao Viet, Liberty, MIC - Military, and Aviation - VNI.

Benefits of buying insurance at Thanh Phong Auto:

• Professional advice: A dedicated and experienced team of staff will help customers understand each type of insurance, thereby making the best choice for their needs and financial capabilities.
• Guarantee of benefits: Thanh Phong Auto commits to protecting customers' benefits through clear and quick compensation agreements. Customers will be supported in vehicle appraisal and repair after accidents under the authorization of affiliated insurance companies.
• Quick procedure: The insurance purchasing process at Thanh Phong Auto is optimized to save time for customers, from preparing documents to signing contracts.
• Variety of options: Customers can choose between a variety of insurance packages, including compulsory and voluntary insurance, to best meet their individual needs.

With outstanding advantages and dedicated service, Thanh Phong Auto is confident to be the ideal choice for those who are looking for services. Selling quality auto insurance in Ho Chi Minh CityCome to us to experience perfect service and feel more secure when owning your car!