Insurance For "Baby" - Should You Participate?

In today's era, when personal means of transportation are increasingly popular, auto insurance has become an essential need for every car owner.

Car insurance is not only a financial product but also an effective risk management tool, protecting the assets and safety of vehicle users. Insurance companies such as Bao Viet, Bao Minh or PVI are providing a variety of insurance types, from mandatory civil liability insurance to optional motor vehicle physical insurance packages.

With the development of technology, the process from buying insurance, declaring an accident to settling compensation is becoming more and more convenient and faster through mobile applications and online platforms. However, besides the benefits, there are still many challenges such as insurance fraud, disputes over the level of compensation, or people's incomplete awareness of the importance of auto insurance.

Overview of Vietnam Auto Insurance Market

According to data from the Insurance Association of Vietnam (IAV), the auto insurance market has grown significantly in recent years:

• 2023: Auto insurance premium revenue reaches about 21.500 billion VND, an increase of 15% compared to 2022.
• The rate of cars participating in voluntary physical insurance is about 35% of the total number of cars in circulation.

These numbers show that Vietnamese people are increasingly aware of the importance of auto insurance.

Main Types of Auto Insurance

1. Compulsory civil liability insurance

Characteristics:

• Mandatory according to the law
• Protects vehicle owners from financial liability to third parties

Fee: From 437.000 VND to 1.560.000 VND/year depending on vehicle type (according to Circular 04/2021/TT-BTC)

Maximum compensation level:

• Human damage: 150 million VND/person/case
• Property damage: 100 million VND/case

2. Vehicle physical insurance

Characteristics:

• Voluntary
• Protects vehicle owners from physical damage to the vehicle itself

Fee: Usually from 1,5% to 2,5% of vehicle value/year

Coverage:

• Total loss
• Total theft
• Part loss
• Damage caused by flooding (water strike)

3. Accident insurance for people sitting in the car

Characteristics:

• Voluntary
• Protect drivers and passengers

Fee: About 0,1% to 0,3% of insurance amount/person/year

Compensation level: Depending on insurance package, can be up to 100 million VND/person/case

Benefits of Participating in Auto Insurance

5 benefits when participating in auto insurance include:

• Minimize financial risks: Insurance helps car owners avoid large expenses when incidents occur.
• Comply with the law: Compulsory civil liability insurance is a legal requirement for all vehicles participating in traffic.
• Peace of mind when driving: Car owners can feel more secure knowing they are protected against risks.
• Technical support: Many insurance packages provide 24/7 rescue services, helping car owners in case of emergency.
• Protect property value: Property insurance helps maintain the value of a car over time.

Things to Note When Choosing to Buy Auto Insurance

5 things to note when choosing to buy auto insurance include:

• Compare insurance plans: Carefully evaluate insurance plans from many different companies to find the best combination of price and benefits.
• Consider your deductible: A higher deductible can lower your premiums, but it also means you have to pay more when you have a claim.
• Read terms and conditions carefully: Understand what is covered and what is not covered.
• Check the reputation of the insurance company: Learn about the claim settlement rate and customer reviews.
• Consider additional services: Some companies offer services like auto glass coverage, extended personal accident coverage, etc.

New Trends in Auto Insurance

New trends in auto insurance include:

• Insurance by kilometer: Insurance companies are testing a fee model based on the number of kilometers driven, suitable for those who rarely use the car.
• Technology application: Using driving behavior monitoring devices to assess risks and adjust insurance premiums.
• Digital process: Register, claim and track contracts online, making the process faster and more convenient.

Auto insurance is not only a legal requirement but also an effective risk management tool for every car owner. By choosing the right insurance package, you can protect not only your vehicle but also your finances and peace of mind when on the road. Carefully consider your options and consult experts to make the wisest decision for your "pet".

Frequently Asked Questions (FAQ)

1. Is vehicle physical insurance mandatory?

Vehicle insurance is not required by law. However, this is a very useful type of insurance, protecting car owners from physical damage to their own car. Read the article now: Note about physical and auto body insurance Most details are shared on the website.

2. How is the vehicle physical insurance premium calculated?

Vehicle physical insurance premiums usually range from 1,5% to 2,5% of vehicle value/year. The specific rate depends on many factors such as: vehicle value, vehicle type, year of manufacture, purpose of use and insurance history of the vehicle owner.

3. What is hydro impact insurance and is it necessary?

Water damage insurance is insurance for cases where the vehicle is flooded, causing engine damage. This is an important extension of vehicle physical insurance, especially necessary in areas frequently flooded. Statistics show that repair costs due to water damage can be up to 30-50% of the vehicle value.

4. Can I purchase personal accident insurance separately?

Yes, you can purchase passenger accident insurance separately. The fee is usually from 0,1% to 0,3% of the insurance amount/person/year. For example, with an insurance level of 100 million VND/person, the annual fee will be from 100.000 to 300.000 VND.

5. How to reduce car insurance premiums?

To reduce auto insurance premiums, you can:

• Choose a higher deductible
• Install additional security equipment
• Participate in safe driving programs
• Bundle multiple types of insurance with the same company
• Maintain a good driving history

You can immediately refer to these Experience in buying auto insurance Good, best quality used by many car owners today.

6. What is the auto insurance claim process like?

The claims process usually includes the following steps:

• Notify insurance company (within 24-48 hours)
• Collect evidence (photos, videos, police records if any)
• Fill out a claim form
• Take the vehicle to the designated garage to assess the damage
• The insurance company reviews and approves the claim
• Compensation payment (usually within 15-30 days)

7. Does car insurance apply when lending a car to someone else?

Most auto insurance policies apply to the vehicle, regardless of the driver, as long as he or she has the consent of the vehicle owner. However, some cases may be excluded, for example drivers under 18 years of age or without a valid driver's license.

8. Does auto insurance cover the cost of a replacement vehicle?

Not all insurance plans cover replacement vehicle costs. However, many companies offer this service as part of a premium insurance package or as an additional option. Delivery time for replacement vehicles is usually 3-7 days, depending on the level of damage and repair time.

9. Does auto insurance cover damage caused by natural disasters?

Most vehicle insurance packages cover damage caused by natural disasters such as storms, floods, and earthquakes. However, the level of coverage may vary between companies. Some companies may require a separate purchase of natural disaster insurance for an additional fee of about 0,1-0,3% of the car's value/year.