Insurance for "Pet Car" - Things to Pay Attention to

In the ever-growing Vietnamese auto market, choosing the right insurance for your vehicle is more important than ever. This article will provide you with detailed information and in-depth advice to make an informed decision when purchasing auto insurance.

Analysis of Vietnam auto insurance market

According to data from the Insurance Association of Vietnam (IAV), the non-life insurance market, including auto insurance, will reach a total premium revenue of nearly VND 57.880 billion in 2023, an increase of 14,85% compared to the previous year. 2022. The motor vehicle insurance segment alone contributes about 30% of total revenue, equivalent to VND 17.364 billion.

Statistics of Vietnam auto insurance market 2023:

Source: Vietnam Insurance Association (IAV)

Main types of auto insurance

Civil liability insurance (mandatory): This is a type of insurance that every car owner must participate in according to the law.

Vehicle physical insurance: Includes many optional insurance items such as:

• Body insurance
• Natural disaster and flood insurance (water damage)
• Part theft insurance

Driver and passenger accident insurance

Extended insurance: Such as car insurance against fire or explosion.

Choose the right insurance package

1. Consider the car's value

• Vehicles with average value (500 million - 1 billion VND): You should buy body and water damage insurance.
• Luxury cars (over 1 billion VND): Should buy additional parts theft insurance.

For example: With a Toyota Camry 2.5Q (price about 1,4 billion VND), the comprehensive insurance package includes:

• Body insurance
• Water damage insurance
• Part theft insurance Total insurance costs can range from 25-30 million VND/year, depending on the insurance company and specific terms.

2. Assess the vehicle usage environment

• Frequently flooded areas: Priority is given to water damage insurance.
• Large cities, high risk of theft: Consider parts theft insurance.

According to a report from the Traffic Police Department (Ministry of Public Security), in 2023, there will be about 1.200 cases of theft of car components recorded in big cities like Hanoi and Ho Chi Minh City.

3. Consider the frequency of vehicle use

• Regular use: Should buy a comprehensive insurance package.
• Use less: You can choose a basic insurance package with a lower fee.

Important factors to pay attention to

1. Water damage and natural disaster insurance

Why is it important?

• Repair costs after flooding are very high, especially for luxury cars.
• For example: Repairing a hydrostatic engine for a Mercedes-Benz C-Class can cost up to 500 million VND.

Note: Not all insurance companies offer this service. Read the terms carefully and ask your insurance agent specific questions.

2. Spare parts theft insurance

Points to note:

• Many companies do not compensate if the car's rearview mirror is broken while parked unattended.
• Some companies limit the number of parts or the number of thefts covered.

3. Rescue service and repair garage selection

According to a survey by the Vietnam Automobile Manufacturers Association (VAMA), repair costs at genuine garages are 15-20% higher than independent garages.

Note:

• Many insurance companies only reimburse rescue costs if customers purchase the additional benefit of choosing a repair garage.
• You may have to pay an additional fee if you want to choose your own garage for repair.

Cost-effective insurance purchasing strategy

5 ways to buy car insurance to save money:

• Compare prices from multiple providers: Use online comparison tools or contact directly with at least 3-5 insurance companies to get an overview of prices and services.
• Take advantage of offers and discounts: Many insurance companies offer discounts for new customers or when purchasing a combined insurance plan (e.g. auto + home insurance).
• Adjust your deductible: Increasing your deductible can help lower your annual premium. However, you need to carefully consider your financial capabilities in case something goes wrong.
• Consider your driving history: If you have a safe driving history with no accidents or violations, mention this when negotiating with your insurance company for a discount.
• Update your insurance regularly: Vehicle values ​​decrease over time, so review and adjust your insurance every year to avoid paying more than necessary.

Choosing the right auto insurance requires careful consideration of many factors. By applying the advice and information in this article, you can make wise decisions, optimally protect your "darling car" while still saving money. Remember, the ultimate goal is to find a balance between protection and cost, while making sure you understand all the terms of your insurance policy.

Frequently asked questions (FAQ)

1. What is the fee for compulsory civil liability insurance?

Compulsory civil liability insurance premiums are regulated by the Ministry of Finance and vary by vehicle type. For example, for cars with less than 6 seats, the fee is 437.000 VND/year, while for cars with 6-11 seats the fee is 794.000 VND/year. Read the article now: Experience in buying civil liability insurance High quality and most effective, applied by many car owners.

2. How to choose the appropriate deductible for vehicle physical insurance?

Deductions usually range from 0,5% to 2% of the vehicle value. For example, with a car worth 1 billion VND, the deduction can be from 5 million to 20 million VND. Choosing a higher deductible will reduce insurance premiums, but you need to consider your financial capacity when an incident occurs.

3. What damages does water damage insurance usually cover?

Water damage insurance usually includes:

• Engine damage due to flooding
• Failure of electrical and electronic systems
• Interior damage due to flooding
• Costs for rescuing and towing vehicles from flooded areas

4. Should I buy total vehicle theft insurance?

Theft insurance The entire vehicle is usually recommended for high-value vehicles (over VND 1,5 billion) or in areas with high theft rates. According to statistics from the Traffic Police Department, in 2023 there will be about 500 car theft cases nationwide.

5. How to reduce car insurance premiums?

To reduce your insurance premiums, you can:

• Install anti-theft devices (up to 10% off)
• Participate in safe driving training courses (5-15% discount)
• Buy combined insurance package (10-20% discount)
• Pay the fee once for many years (5-10% reduction/year)

6. What other types of extended insurance are there besides fire and explosion insurance?

In addition to fire and explosion insurance, other types of extended insurance include:

• Car crash/collision insurance when parked
• Insurance for damage caused by animals
• Insurance for vehicle glass damage
• Insurance for damage caused by terrorism

7. How to evaluate the service quality of an auto insurance company?

To evaluate service quality, you can:

• Check the complaint resolution rate (good if above 90%)
• Consider the average claim settlement time (ideally less than 14 days)
• Read customer reviews on online platforms
• Check the company's financial credit rating (A- or higher is good)

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8. Is there any difference between insurance for personal and business vehicles?

Business car insurance often has some differences:

• Fees are 10-20% higher due to higher usage risks
• Can insure multiple drivers
• Business interruption insurance is often included
• Higher liability limits (usually 2-3 times that of personal vehicles)

9. How to optimize insurance benefits when an incident occurs?

To optimize insurance benefits:

• Record incident details with photos and videos
• Report the incident to the insurance company within 24 hours
• Keep all invoices and documents related to repairs
• Request a second opinion if you disagree with the damage assessment
• Understand the exclusion clauses in the contract

10. Are there any cases that vehicle physical insurance does not cover?

Cases that are usually excluded include:

• Driving while drunk (alcohol concentration >50mg/100ml of blood)
• Using the vehicle for illegal purposes (such as racing)
• Damage due to war or terrorism (unless extended insurance is purchased)
• Natural wear and tear or technical defects not caused by accident
• Damage occurring outside the territory of Vietnam (unless international insurance is available)