Information You Need to Know About One-Way & Two-Way Auto Insurance

One-way & Two-way Auto Insurance
Latest update date: February 09, 12

Car insurance is a form of financial protection for car owners, helping to minimize risks and damages that may occur when using the car.

According to research by the Insurance Information Institute (III, 2023) in the 'Global Auto Insurance Trends' report, auto insurance helps reduce 78% of financial risks for car owners in traffic accidents.

Car insurance is a legal requirement for all car owners in Vietnam. However, many drivers are still confused about choosing between 1-way and 2-way car insurance. Here are some details to help you make the right decision.

One-way & Two-way Auto Insurance
One-way & Two-way Auto Insurance: A-Z Summary

What is one-way auto insurance?

One-way auto insurance, also known as compulsory civil liability insurance, is a type of insurance that only pays for damage you cause to third parties in the event of a traffic accident. Specifically:

  • Coverage: This insurance will cover third party bodily injury and property damage, excluding the cost of repairing your vehicle.
  • Fee level: According to Circular No. 22/2016/TT-BTC of the Ministry of Finance, the maximum compensation level for each damaged person is 100 million VND and for each accident is 100 million VND.
  • Benefits: Suitable for drivers on a limited budget who only need minimal protection in case of damage to others.

What is one-way auto insurance?

Two-way car insurance includes both civil liability insurance and vehicle physical damage insurance. This means you will be protected against both types of risks:

Scope of compensation:

  • Compensate third parties in case you cause an accident.
  • Covers the cost of repairing your vehicle in an accident.
  • Protection against risks such as natural disasters, fire, theft.

Fees: Two-way auto insurance fees usually range from 2% to 1,4% of the vehicle's value, depending on the insurance company and the terms of the contract.

Benefits: This is a safer option for those who own new or high-value cars, helping to reduce the financial burden in the event of an accident.

Asian Insurance Review's (2023) 'Comprehensive Auto Insurance Benefits Study' found that 89% of car owners with two-way insurance were fully compensated for damages in accidents, compared to 45% in the one-way insurance group.

Cases not covered by insurance

1. For 1-way car insurance

  • Damage caused intentionally by a third party.
  • The accident occurred when the vehicle owner did not have valid driving documents.
  • Damage caused by natural disasters such as earthquakes or floods.

2. For 2-way car insurance

  • Vehicle is subject to natural wear and tear or loss of functionality.
  • Third and subsequent claims for parts theft.
  • Damage caused by vehicle owner violating traffic laws.
- Information You Need to Know About One-Way & Two-Way Auto Insurance
In which cases is insurance compensation not paid?

One-way & two-way auto insurance

Car insurance premiums are determined based on many factors such as vehicle type, intended use, and contract terms. Specifically:

Insurance type Charges
One way insurance According to regulations of the Ministry of Finance (100 million VND/person)
One way insurance 1,4% – 2% of vehicle value

Experience in buying effective one-way and two-way auto insurance

To buy effective car insurance, you should note the following:

  • Compare prices: Compare prices between insurance companies to avoid being ripped off.
  • Do your research: Read the terms of the contract carefully and consult with people who have used the service.
  • Choose a reputable company: Choose a company with high reliability and positive customer feedback.
  • Negotiate terms: It may be possible to negotiate for a higher deductible to save costs.

Choosing between one-way and two-way auto insurance depends on your personal needs and budget. If you need a cost-effective solution but still ensure third-party liability, one-way insurance is a reasonable choice. On the other hand, if you want more financial peace of mind in the event of an accident or damage to your vehicle, consider investing in two-way insurance. Make sure you understand the benefits and responsibilities before deciding to buy insurance.

- Information You Need to Know About One-Way & Two-Way Auto Insurance
Experience when buying 1-way & 2-way auto insurance

FAQ – Frequently Asked Questions

1. Is one-way auto insurance mandatory?

One-way car insurance is a compulsory insurance according to Vietnamese law. All car owners must purchase this insurance to ensure compensation for damages they cause to third parties in the event of an accident.

2. What is the maximum compensation for two-way auto insurance?

The maximum compensation level of two-way auto insurance is not specifically regulated like one-way insurance, but often depends on the value of the vehicle and the terms of the insurance contract. However, many insurance companies often apply compensation levels of up to billions of dong for material damage.

3. What other types of insurance are there besides one-way and two-way auto insurance?

In addition to one-way and two-way auto insurance, there are other types such as personal accident insurance for drivers, Civil liability insurance extended, and rental or business vehicle insurance.

4. Who is compensated in case of an accident?

In the event of an accident, the injured party (third party) will be compensated by the insurance company of the owner of the vehicle that caused the accident. If the owner of the vehicle has two-way insurance, they will also be compensated for damage to their own vehicle.

5. In what cases are vehicle repair costs compensated?

The cost of car repairs will be compensated if you have two-way car insurance and the damage occurs due to traffic accidents, natural disasters, or incidents that are not your fault. However, it is important to note that the specific terms of the contract will determine the scope of this compensation.

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

Thanh Phong Auto provide sales service car insurance professional, helping customers protect assets and minimize financial risks when incidents occur. We cooperate with many prestigious domestic and foreign insurance companies such as Bao Viet, Liberty, and MIC - Military, providing customers with a variety of insurance packages to suit their individual needs.

Thanh Phong Auto's dedicated staff will provide detailed advice on insurance types, including compulsory civil liability insurance and voluntary physical insurance, helping you make the best decision.

- Information You Need to Know About One-Way & Two-Way Auto Insurance
Professional car care service in HCM

In addition to providing insurance cards, we also support customers in quick and convenient compensation procedures. With many years of experience in the auto repair industry, Thanh Phong Auto is committed to professional appraisal and repair of accident vehicles, ensuring maximum benefits for customers.

Come to Thanh Phong Auto to experience the prestigious and quality auto insurance sales service, helping you feel more secure when participating in traffic! You can refer to the Top 7 Auto insurance company Reputable, best price today.

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