Why Should You Buy Auto Body Insurance?

Auto body insurance is an important form of insurance to protect car owners from vehicle-related risks and financial losses. This type of insurance includes physical insurance, often called "body insurance", and mandatory civil liability insurance.

Body insurance will compensate car owners for the costs of repairing or replacing the car when incidents such as collisions, rollovers, or natural disasters occur. This is very important because repairing a car after an accident can cause large expenses, up to millions of dong depending on the level of damage.

International Insurance Institute – III Regularly conduct research on market trends, compensation levels and repair costs related to auto insurance. Their reports provide statistical data on collision rates and average repair costs by vehicle type and geographic region. For example, III's recent report found that the average body-insured collision in the US costs $3.000 to repair.

In addition, mandatory civil liability insurance will protect car owners from compensation claims from third parties in case of an accident. Purchasing full body insurance not only ensures financial security for car owners but also brings peace of mind when participating in traffic. Therefore, auto body insurance has become an indispensable solution to comprehensively protect your "beloved car" as well as the car owner's finances.

What is auto body insurance?

Auto body insurance is a type of property insurance, providing financial protection for the body and shell of a car against loss or damage caused by unexpected incidents. The vehicle body includes:

• Entire metal shell (or other material)
• Car lights and mirrors
• Glass around the car
• Tombs
• Car hood (bonnet).
• Fenders

When participating in auto body insurance, the car owner will be compensated for physical damage occurring to the car body due to causes specified in the contract, including:

• Traffic accidents
• Object collision
• Natural disasters such as floods, storms, lightning strikes, earthquakes, and land subsidence
• Vandalism and theft by thieves
• Sudden explosion
• Other risks are stated in the contract

According to statistics from the Vietnam Register, each year there are about 20.000 traffic accidents involving cars occurring across the country, causing damage to people and property. Of these, up to 70% of cases caused serious damage to the vehicle body. This shows the importance of participating in auto body insurance to minimize financial risks when an incident occurs.

Practical benefits when buying auto body insurance

Buying auto body insurance brings many practical benefits to car owners:

• Comprehensive protection for your car: Insurance helps protect the car body from most common risks, keeping the car in the best condition.
• Save significant repair costs: The cost of repairing and replacing car bodies is often very expensive. Insurance helps reduce the financial burden when a body damage incident occurs.
• Increase the value and liquidity of the vehicle: A fully insured vehicle will have a higher value and be easier to sell when needed to liquidate.
• Peace of mind when driving: Body insurance helps car owners feel more secure when driving on the road, no longer worrying about possible risks.
• Quick compensation procedures: Reputable insurance companies always have a quick and convenient compensation process, helping car owners quickly overcome the consequences and put the car back into use.
• Many flexible insurance packages: Car owners can choose a body insurance package that suits their needs and financial capabilities.

A typical example showing the effects of auto body insurance is the case of Mr. Nguyen Van A, owner of a Toyota Vios. On a stormy day, while traveling on the road, the car was unfortunately hit by a large tree branch, causing serious damage to the hood and windshield. Fortunately, Mr. A bought car body insurance. After carrying out the necessary procedures, the insurance company paid all repair costs up to 25 million VND. Without insurance, Mr. A will have to spend a large amount of money to overcome the consequences.

Note when buying car body insurance

When buying car body insurance, you need to pay attention to the following issues:

• There will be some parts that are not covered, typically: fuel system, gearbox, engine block, front and rear axle, steering system, suspension system, water tank, oil tank.
• You need to provide detailed information about the vehicle type, number of seats, year of manufacture, etc. This is to determine the fee difference between body insurance and full insurance. Therefore, you should immediately buy body insurance when the car is still new (high value). This is the optimal way to help you feel more secure when traveling on the road without worrying too much about costs when a collision occurs.
• Users should consider the conditions, fees and benefits when participating in each type of body insurance to make the most accurate decision.
• When the car is damaged, the insurance payment will be divided into 2 different cases. In the first case, the damage is lower than the normal exemption level, at which point the car owner will have the choice whether to apply this insurance or not. In the second case, the damage is higher than the deductible and at this time the insurance buyer will pay according to the deduction method. This number is calculated by subtracting the deductible from the cost of the damage. In addition, you can also choose to buy a new car insurance package without deducting depreciation.

Where to buy car body insurance?

Currently, most major insurance companies in Vietnam such as Bao Viet, Bao Minh, Liberty, PVI... provide auto body insurance products. Customers can choose to buy directly at agents, insurance company offices, or through online channels such as websites and mobile applications.

Some reputable car dealers such as Thanh Phong Auto also provides consulting services and sells body insurance to customers. With many years of experience and reputation, Thanh Phong Auto always provides customers with the best insurance options, suitable for each specific need.

When buying auto body insurance, customers need to prepare necessary documents such as:

• Vehicle registration certificate (cavet)
• Valid inspection (registration) certificate

Besides body insurance, car owners should also consider participating in other types of auto insurance such as mandatory civil liability insurance, vehicle physical insurance, vehicle occupant accident insurance... to Ensuring maximum safety and peace of mind when participating in traffic.

In an increasingly complex traffic context with many unpredictable risks, auto body insurance has become an indispensable solution to comprehensively protect the vehicle as well as the vehicle owner's finances. With the practical benefits that this type of insurance brings, car owners can safely enjoy the joy of driving and explore new journeys without any worries.

Frequently asked questions about car body insurance

1. How is the auto body insurance premium calculated?

Auto body insurance premiums depend on many factors such as vehicle value, vehicle type, vehicle age, insurance amount, deductible... Normally, insurance premiums range from 1,5-3%. car value. For example, for a car worth 500 million VND, the annual body insurance fee can be from 7,5 to 15 million VND.

2. Is auto body insurance mandatory?

No, auto body insurance is a type of voluntary insurance. However, the Road Traffic Law stipulates that car owners are required to buy civil liability insurance.

3. What types of vehicles can be purchased with body insurance?

Most types of cars such as passenger cars, passenger cars, trucks, specialized vehicles... can participate in body insurance. However, some insurance companies may refuse to insure vehicles that are too old, vehicles that have been in serious accidents, or imported vehicles that are not genuine.

4. Does auto body insurance cover damage caused by the driver's fault?

Yes, auto body insurance still covers damage caused by the driver's fault, except in cases of intentionally causing an accident, using the vehicle for illegal purposes, driving while intoxicated or do not have a valid driver's license.

5. What steps does the auto body insurance compensation process include?

When a car has a problem within the scope of insurance, the car owner needs to take the following steps:

• Immediately notify the insurance company about the incident
• Collect relevant documents and records such as scene photos, accident records, repair invoices, etc.
• Submit claim documents to the insurance company
• The insurance company conducts a loss assessment and determines the compensation amount
• The car owner receives compensation after deducting costs as agreed in the contract

Normally, compensation settlement time is 5-15 working days depending on the level of loss.

6. Which company should I buy auto body insurance from?

When choosing to buy auto body insurance, customers should prioritize reputable insurance companies with extensive experience, extensive partner networks, and quick compensation procedures. Some of the leading auto insurance companies in Vietnam include Bao Viet, Bao Minh, PVI, PTI, MIC...

7. Can I buy car body insurance online?

Yes, currently most insurance companies deploy online insurance purchasing, making it easy for customers to choose and participate in insurance anytime, anywhere. Car owners just need to access the insurance company's website or application, enter vehicle information, choose the appropriate insurance package, and pay the fee.

8. Does car body insurance cover car theft or robbery?

Normally, auto body insurance does not cover cases where the vehicle is completely stolen due to theft or robbery. To be insured for this risk, the car owner needs to purchase an additional vehicle physical insurance package (total loss insurance).

9. Can I buy body insurance for used cars?

Yes, many insurance companies accept body insurance for used cars, as long as the car is still in good operating condition and meets quality and safety conditions. However, insurance premiums for used cars are often higher than for new cars.

10. Does car body insurance include the car's interior?

Normally, car body insurance only covers external vehicle damage such as shell, glass, mirrors, lights, bumpers, etc. To insure the car's interior such as leather seats, steering wheel, dashboard, sound system, etc. , car owners need to buy more Vehicle material insurance package.

11. Can car body insurance be purchased along with civil liability insurance?

Yes, most insurance companies offer comprehensive auto insurance packages, including mandatory civil liability insurance and voluntary body insurance. Buying a combo package will help car owners save time and money compared to buying each type separately. You can refer to some Be sure to buy car civil liability insurance shared on the website.

12. Can a car that has an accident be compensated without notifying the insurance company?

No, when a car has an accident, the car owner must immediately notify the insurance company according to the provisions of the contract. If there is no notification or late notification, the insurance company has the right to refuse compensation or reduce the compensation amount.

13. What documents need to be prepared when buying auto body insurance?

When buying car body insurance, car owners need to provide the following documents:

• Vehicle registration certificate (cavet)
• Certificate of technical safety and environmental protection inspection
• Identification documents of the vehicle owner such as ID card, passport, citizen identification card...

If buying insurance through a broker or agent, the car owner needs to present a valid referral or authorization letter.

14. Does auto body insurance cover accidents caused by drunk driving?

No, most auto insurance policies exclude liability for accidents caused by drunk driving, with blood alcohol concentration or breath air exceeding the allowable level. . In this case, the car owner will have to pay for all damages incurred.