6 Things to Keep in Mind When Buying Car and Truck Insurance

6 Notes When Buying Car and Truck Insurance You Need to Understand Premium Garage Thanh Phong Auto Hcm 2024
Latest update date: February 14, 05

Car and truck insurance plays an important role in protecting owners and drivers from financial risks related to accidents or damages caused by these vehicles. The right insurance policy will provide a broad layer of protection, including covering the repair or replacement of damaged vehicles, compensating for damages caused to third parties and ensuring that the owner Owners and drivers do not bear a significant financial burden in the unfortunate event of an incident.

Swiss Re (World's largest reinsurance group): Swiss Re's 2023 report shows the difference in insurance participation rates between cars and trucks. The report shows that 80% of personal cars globally are insured, while this figure for trucks is only 65%. This may be related to mandatory insurance regulations in each country.

Buy insurance for cars and trucks is mandatory and necessary for every car owner. This provides very good financial support for you if an accident happens.

Currently, there are many car and truck insurance businesses and there are many types of insurance including mandatory insurance and voluntary insurance. To help you understand clearly car insurance So we will list the top 6 experiences when buying car and truck insurance below for you to easily choose.

Why should you buy truck insurance?

Auto insurance works as a guarantee sheet to help pay the necessary cost to the car owner if the car unfortunately encounters problems such as accidents, lighters. Specifically, depending on the level of financial damage that insurance will have the appropriate level of payment for you. Between you and the insurance company will be linked with each other by an insurance contract and will receive compensation according to the terms 1 parties have committed in the contract.

Choosing the Right Insurance Package Helps You Save Costs When An Incident Occurs
Choosing the Right Insurance Package Helps You Save Costs When An Incident Occurs

Choose the right type of insurance

There are 2 types of automobile insurance for trucks, which are compulsory and voluntary:

Compulsory insurance

  • Civil liability insurance of motor vehicle owners.

Voluntary insurance:

  • Insurance of vehicle owners' civil liability for goods transported on vehicles.
  • Physical damage insurance for motor vehicles.
  • Insurance for passengers in cars and auxiliary drivers.

Car owners should consider using the right insurance for themselves, should not buy too many types of insurance, nor should it save to not buy any type. Some experienced people recommend that:

  • The type of vehicle insurance is the biggest influence on the interests of the vehicle owner. because your car will be compensated in part or in full in the event of an accident, fire, car explosion, natural disaster.
  • For cars that have been used for 4-5 years, you should consider not buying voluntary car insurance.
  • For cars with a value of less than 1 billion, you should not buy parts theft insurance. The more expensive the car, the more necessary it is to buy insurance for theft.
  • Mid-priced cars should also buy physical and hydraulic insurance.
Nowadays, floods often occur in Vietnam, so flood insurance is quite important
Nowadays, floods often occur in Vietnam, so flood insurance is quite important

Should I buy two-way insurance?

2-way insurance means insurance for both you and the person who collided with you. Unlike one-way insurance, insurance is only responsible for a vehicle in the event of a collision. So, if you are using a car, you should buy two-way insurance right away to avoid possible risks.

The cost of accessories to the car interior is very high, and the one-year premium is not too high, the best way to prevent the risk is to buy two-way insurance for your car.

Take advantage of useful additional insurance products and services

Physical vehicle insurance products are usually basic product services with many additional products and services attached. For example, rescue traffic for free, repair in the garage on demand, use spare parts without depreciation ... The specialist can advise (or not) so you need to carefully consider and try to see if you should add the This provision does not.

Depending on the vehicle's condition, travel conditions and driver's qualifications, you should refer to these additional terms accordingly.

Some additional terms are favored by drivers such as hydraulic jacks, free traffic rescue, genuine garage repairs, non-depreciation spare parts repairs, hydraulic insurance and partial loss of parts.

Additional terms of Free Traffic Rescue are of interest to many customers
Additional terms of Free Traffic Rescue are of interest to many customers

Choose a reasonable deductible level

Choose the exemption level so that reasonable? There are many people who don't understand the importance of this clause. This is the amount of money that the driver of the vehicle shares the risk with the insurance company. If you do not choose the exemption level, you will save a lot of cost if the car is slightly damaged, but that amount is nothing if your car suffers great material loss.

For example, if you choose the exemption level is usually 1 million, then when the breakdown of the car damage is less than 1 million, the cost you bear, but if over 1 million, you only pay 1 million, the rest the company said Insurance costs.

Buy a good car insurance company

As the number of trucks and trucks used is increasing, more and more units selling truck insurance have appeared from domestic to foreign companies. Therefore, insurance is also very diverse in form and value. However, you should choose reputable firms to meet legitimate compensation when incidents occur. Some car insurance companies are highly appreciated such as:

  • VNI aviation auto insurance
  • Bao Viet auto insurance
  • Bao Minh auto insurance
  • BIDV auto insurance
  • Liberty auto insurance
Some Reputable Auto and Truck Insurance Companies
Some Reputable Auto and Truck Insurance Companies

Most frequently asked questions about car and truck insurance

1. How much does car and truck insurance cost?

The price of car and truck insurance depends on many factors such as:

  • Vehicle type (car, truck, passenger car...)
  • Car value
  • Type of insurance (compulsory, voluntary)
  • Additional terms

Normally, insurance premiums range from 1.5 - 2% of the car's value for mandatory insurance and from 1.5 - 3% of the car's value for voluntary insurance.

2. How long is the auto and truck insurance contract?

Normally, the term of an auto or truck insurance contract is 1 year. However, there are also a number of short-term 3-month and 6-month insurance packages for you to choose from depending on your vehicle usage needs.

3. How are car and truck insurance fees calculated?

Car and truck insurance premiums are calculated based on the formula:

  • Insurance fee = Premium rate x Insurance value + Compulsory insurance fee

In which:

  • Fee rate: depends on vehicle type, vehicle value, exemption level...
  • Insurance value: is the actual value of the vehicle at the time of purchasing insurance
  • Compulsory insurance fee: compulsory civil liability insurance fee according to regulations

4. Is it mandatory to buy car body insurance?

Mua Car body insurance is not required. However, this is an important type of insurance that helps protect assets and minimize financial risks for car owners in the event of a collision or accident. Therefore, experts recommend that car owners should buy body insurance, especially for high-value vehicles.

5. Is it mandatory to buy civil liability insurance for cars?

According to regulations in Decree 03/2021/ND-CP, car owners are required to buy civil liability insurance. The minimum level of insurance liability is:

  • 100 million VND/person/case for human damage
  • 100 million VND/case for property damage. If you do not buy mandatory civil liability insurance, the car owner may be fined from 300.000 - 500.000 VND.

6. Should I buy water damage insurance for cars and trucks?

Water damage insurance is a type of additional insurance that protects the vehicle from the risks of damage due to flooding. Currently, flooding occurs frequently in Vietnam, so purchasing flood insurance is essential. The cost of purchasing water damage insurance is not too high compared to the benefits it brings.

7. Should you buy insurance for used cars?

For used cars, you should consider buying insurance based on:

  • Vehicle value: If the vehicle's value is less than 300 million VND, you may not need to buy voluntary insurance.
  • Vehicle condition: If the car has been used for more than 7-10 years and is in unstable condition, buying insurance will help reduce financial risks when damaged.
  • Vehicle usage needs: If the vehicle is driven a lot and travels long distances, you should buy insurance. In short, the more valuable the car is, the less stable it is, and the more it is used, the more insurance you should buy.

8. Should I buy 100% new car insurance?

100% new cars usually have a manufacturer's warranty. However, the warranty only covers technical errors, does not include the risk of collision, accident, water damage, theft... Therefore, you should still buy 100% new car insurance for peace of mind. than when using the car.

9. What is parts theft insurance? Should I buy this type of insurance?

Part theft insurance is a type of additional insurance that compensates the car owner if some parts of the car are stolen such as mirrors, wheels, batteries, windshield wipers... However, you should only buy theft insurance. parts for vehicles with high value of 1 billion VND or more. For low-value vehicles, the cost of purchasing this type of insurance is often quite high compared to the value of the lost risk parts.

10. What is the process for buying car and truck insurance?

The process of buying car and truck insurance includes the following steps:

  • Choose the right insurance package
  • Provide vehicle information and vehicle documents to the insurer
  • The insurer surveys, takes photos, and evaluates the vehicle's condition
  • The two parties agree on the terms and sign the contract
  • Customers pay insurance premiums
  • The insurer sends the insurance policy to the customer. The normal time to complete the insurance contract is 1-2 working days.

11. What documents need to be prepared when buying car and truck insurance?

When buying car or truck insurance, you need to prepare the following documents:

  • Vehicle registration certificate
  • Inspection certificate
  • Compulsory civil liability insurance certificate
  • Identity card and driver's license of the vehicle owner
  • Car purchase invoice (if any)

12. When a car or truck has a problem, how do you report it to insurance?

When your car or truck has a problem, you need to:

  • Call the insurance switchboard immediately to notify
  • Take photos of the scene and vehicle damage
  • Collect information from relevant parties such as license plate numbers, ID card numbers, driver's licenses...
  • Do not relocate the scene without the consent of insurance and authorities
  • Follow the insurance instructions to make compensation. Note that you should not arbitrarily repair the vehicle without insurance confirmation.

13. What cases will car and truck insurance not cover?

Car and truck insurance will not pay in the following cases:

  • The driver did not have a valid driver's license
  • The driver was drunk or using stimulants
  • Vehicles carrying prohibited goods, contraband goods, and goods exceeding the allowed load
  • The car drove away voluntarily after the collision, causing an accident
  • The car owner intentionally caused an accident to gain insurance benefits
  • Damage occurs outside the insurance territory
  • The car was damaged during renovation and repair at the garage
  • Damage due to natural depreciation of the vehicle

14. What should be done to limit risks when participating in car and truck insurance?

To limit risks when participating in car and truck insurance, you need to:

  • Choose reputable insurance company, has good compensation payments
  • Read the benefits and terms carefully before buying insurance
  • Choose the appropriate exemption level and additional terms
  • Provide complete and honest vehicle information for insurance
  • Understand the accident declaration process and compensation instructions
  • Comply with traffic laws and periodically maintain your vehicle
  • Install anti-theft equipment for the car
  • Do not modify or modify the vehicle against regulations

The above information hopefully will help you gain more experience when choosing to buy car and truck insurance reasonable and enjoy reasonable benefits. Hope you will soon choose the right auto insurance product for yourself.

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Thematic: Car insurance


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