Car insurance is a financial contract between a car owner and an insurance company, to protect the assets and liabilities associated with the ownership and use of a car.
According to statistics from the Vietnam Insurance Association, in 2021, there were more than 7,2 million insured cars, with total insurance premium revenue reaching nearly 18.000 billion VND. This shows the importance and popularity of car insurance in modern life.
Currently, auto insurance is divided into compulsory insurance and voluntary insurance, including the following common types: Compulsory civil liability insurance, vehicle physical insurance, driver and passenger accident insurance, and extended insurance.
When deciding to buy auto insurance, you should choose reputable insurance companies and compare benefits and fees between different packages. Read the terms of the contract carefully, provide honest information, and consider additional services to ensure optimal benefits for yourself.
When using auto insurance, it is very important to comply with traffic laws, maintain the vehicle regularly and equip it with safety equipment. If an accident occurs, promptly notify the insurance company and prepare the necessary documents for compensation. Cooperate closely with the assessor to protect your rights.
Let's explore more details about auto insurance through the following article!
Car insurance is a legal contract between the car owner and the insurance company, to protect the car owner's finances and ensure the safety of traffic participants when risks occur. Car insurance is regulated by a strict legal system in Vietnam with the Law on Insurance Business and related decrees and circulars.
Car insurance helps protect the property (the car) and civil liability of the car owner against risks such as accidents, natural disasters, theft, etc.
The importance of car insurance is reflected in two main aspects:
According to data from the Vietnam Insurance Association, in 2023, motor vehicle insurance premium revenue will reach about VND 17.500 billion, accounting for 15,8% of total non-life insurance premium revenue.
Car insurance activities in Vietnam are regulated by a strict system of legal documents, under the management and supervision of the Ministry of Finance and the Vietnam Insurance Association.
This system of documents creates a transparent legal environment and protects the interests of both insurance companies and insurance participants.
Car insurance in Vietnam includes many types such as: Compulsory civil liability insurance, vehicle physical insurance, driver and passenger accident insurance, extended insurance.
Compulsory civil liability insurance is a type of insurance that all car owners must participate in according to the law. The insurance protects the car owner's liability for personal and property damage caused to third parties.
The maximum insurance liability level according to Circular No. 04/2021/TT-BTC is 150 million VND/person/case for personal injury and 100 million VND/case for property damage.
Vehicle physical damage insurance protects the owner against physical damage to his or her vehicle. There are two main types:
Driver and passenger accident insurance provides financial protection for drivers and passengers in the event of an accident. Compensation is usually calculated based on the percentage of disability or death, with the maximum amount being hundreds of millions of dong.
In addition to the three main types of insurance mentioned above, car owners can choose to add some optional insurance types to expand the scope of protection, such as:
Reference comparison table:
Insurance type | Main characteristics | Required Level |
Compulsory civil liability insurance | Third Party Liability Protection | Obligatory |
Car insurrance | Vehicle physical damage protection | Voluntary |
Driver and passenger accident insurance | Protect people in the car | Voluntary |
Extended insurance (theft, flood) | Protection against special risks | Voluntary |
When choosing auto insurance, prioritize reputable insurance companies and compare benefits and rates between different packages. Read the insurance terms carefully, provide honest information, and consider the accompanying services to ensure the best benefits for yourself.
Prioritize choosing large insurance companies with brands and many years of experience in the market such as Bao Viet, Bao Minh, Pjico, MIC, PTI, Liberty, VNI, etc. These companies often have strong financial capacity, ensuring the ability to pay compensation, along with a wide network of garages and affiliated hospitals nationwide.
Carefully compare the benefits and premiums of different insurance plans from different companies. Choose the insurance plan that best suits your needs and your budget. Don’t just focus on the low price and ignore the important benefits.
For example, with auto body insurance, a premium package typically has broader coverage, including theft and natural disaster risks, but the premium is also higher than the basic package.
Before signing the contract, read and understand the terms and conditions of the insurance carefully. Pay attention to important contents such as:
When purchasing insurance, the vehicle owner must fully and honestly declare information about the vehicle, its condition, and its loss history (if any). If the vehicle owner intentionally misrepresents or deceives, the vehicle owner may be denied compensation or be prosecuted for insurance fraud.
Some insurance companies offer attractive benefits and accompanying services such as:
These benefits will bring many conveniences and peace of mind to car owners.
When using auto insurance, car owners must comply with traffic laws, maintain their vehicles regularly, and equip them with safety equipment. In case of an accident, they must promptly notify the insurance company, prepare a complete claim file, and cooperate with the appraiser to ensure that their rights are protected.
This is not only the responsibility of the traffic participant but also to protect insurance benefits. If there is a violation of the law such as driving under the influence of alcohol, using stimulants, carrying prohibited/overloaded goods... the insurance company has the right to refuse compensation.
Regular maintenance is the way to keep your car in the best condition. At the same time, when an accident occurs, the car owner also needs to repair the car at a reputable garage to ensure quality and have the insurance company accept the repair costs.
Installing dash cams, reverse sensors, anti-theft locks, etc. not only helps improve driving safety but also provides important evidence in the event of an accident, helping insurance companies easily determine the cause and liability for compensation.
Immediately after an accident, fire, theft, etc., the vehicle owner must contact the insurance company via the hotline or mobile application for instructions on the next steps. Do not move or repair the vehicle without consulting the insurance company.
To receive quick compensation, the vehicle owner needs to provide complete relevant documents and certificates such as:
In particular, all information provided to the insurance company must be true, and no false declarations must be made to benefit from insurance.
When the company sends an appraiser to the scene, the vehicle owner must cooperate actively, providing full information and relevant evidence to help determine the cause and extent of damage accurately. This will help the compensation to be carried out quickly and fairly.
In addition, car owners also need to carefully keep the insurance policy and other related documents. These are important documents to prove your insurance benefits when necessary.
Liability auto insurance is required by law. Other types of voluntary insurance are not required, depending on the needs of the vehicle owner.
Insurance premiums depend on the value of the vehicle, type of vehicle, level of risk, coverage, etc. The more expensive the vehicle, the higher the risk, the wider the coverage, the higher the insurance premium.
Buying insurance online is an increasingly popular trend, helping to save time and money. However, car owners need to choose a reputable website with full operating license.
You should carefully review product information and contract terms before payment.
According to current regulations in Vietnam, the compulsory civil liability insurance contract of the motor vehicle owner will terminate from the time the vehicle registration certificate is revoked. This means that you cannot transfer this type of insurance to the buyer.
For other types of voluntary insurance such as auto insurance and additional liability insurance, some insurance companies may allow contract transfer. However, the conditions and procedures for transfer will vary from company to company.
Under current regulations, compulsory motor vehicle liability insurance will protect third parties who are injured by your vehicle, regardless of who is driving. So, if the person you lend your car to causes an accident, the insurance will pay for the damage they cause to others.
For other types of voluntary insurance such as auto insurance, additional civil liability insurance, the terms of insurance will vary from company to company. Some companies may limit insurance benefits if the driver is not named in the contract.
To professional auto insurance options, buyers need to consider the following factors:
These Pay attention when buying auto civil liability insurance including: scope of payment, level of liability, duration and validity of insurance.
Thanh Phong Auto Cooperate with many prestigious insurance brands such as Bao Viet, Liberty, MIC – Military, Aviation – VNI,… and also provides professional insurance car repair services. Here, customers are advised to choose the type of insurance that suits their needs and financial capabilities without being forced into a specific product.
Advantages of Thanh Phong Auto include:
Contact us now for advice on buying auto insurance if needed!
Cars Care Service Price Sheet At Thanh Phong Auto HCMC VietNam:
* The cars that we have mechanics: Mercedes, BMW, Audi, Lexus, Toyota, Honda, Mazda, Mitsubishi, Kia, Daewoo, Hyundai,Ford, Nissan, Volkswagen, Porsche, Chevrolet, Rand Rover, Innova, Fortuner, Vios, Fiat, Bugatti, Ferrari, Bentley, Hummer , Chrysler, Dodge, Renault, Cadillac, Volvo, Subaru, Daihatsu, Ssangyong, Roll-Royce, Peugeot, Smart Fortwo, Tobe M'car, Luxgen, Zotye, Haima, Geely, Baic, Hongqi, Cmc, Mini Cooper, Buick, Opel, Acura, Aston Martin, Vinfast, TQ Wuling, BYD.
To keep your vehicle running properly at all times, we offer a number of services that are carried out by our certified, expert auto service and repair technicians who have years of experience performing everything from oil changes to a complete engine overhaul.
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