Auto insurance regulations

Car insurance regulations are issues that we need to understand clearly before deciding to buy a car.

Car insurance is a way to protect people and property against risks or losses that may occur. Thus, when we buy insurance, the insurance provider will pay an agreed amount of money when there is damage to the body or life as well as property.

Compulsory insurance is a car purchase cost that we need to calculate before buying a car. This insurance amount is actually not too large, car owners still need to pay annually. Therefore, each car owner needs to understand the regulations on car insurance to be proactive in this matter.

Auto insurance regulations

Compulsory civil insurance

All car owners. Each car owner is not allowed to participate in two or more civil liability insurance contracts at the same time if used for the same car. The following cases will not be covered by insurance:

*When an accident occurs, a third party intentionally causes additional damage.

*The car driver intentionally fled after causing the accident.

*The driver was unable to produce a valid driver's license.

Indirect consequences include damage to homes, trees, or property stolen during the accident.

Coverage:

The insurance provider will pay for damages to third parties, including personal injury, loss of life or property. In case the passenger car is engaged in the business of transporting services, the insurance provider will also pay for bodily injury to the passengers caused by the car.

Interest:

When purchasing civil liability insurance for cars, the maximum compensation amount is clearly stated in the insurance contract. According to Circular No. 04/2021/TT-BTC issued by the Ministry of Finance and applied from January 2021 as follows:

*Compensation level for people is 150 million VND/person/case

*The compensation for property is 100 million VND/case

*The insurance contract may be cancelled when one of the following cases occurs:

*Cars whose license plates or vehicle registrations have been revoked according to regulations

*The vehicle is insured but has expired.

*The vehicle was stolen and confirmed by the police.

*Vehicles are damaged or destroyed and are no longer usable as confirmed by traffic authorities.

Auto insurance regulations — Every car owner needs to understand the regulations on compulsory auto insurance.

Voluntary insurance

In addition to compulsory civil liability insurance, car owners can consider choosing to participate in the following voluntary insurance types at the same time:

Accident insurance for drivers, assistant drivers and passengers : The scope and amount of payment depends on the provisions of the insurance package and is clearly stated in the contract.

Physical damage insurance for cars : Insurance for the car body as well as the vehicle's machinery and equipment. Therefore, when a car has an accident, the insurance company will support the costs for the car owner to repair damages such as: scratches, mechanical damage, theft, etc.

Voluntary civil liability insurance: In addition to the amount paid under compulsory civil liability insurance, if the car owner participates in additional voluntary insurance, an additional amount will be paid depending on the specific provisions of the insurance package and this is clearly stated in the contract.

Civil liability insurance for goods : This type of insurance pays for damage to goods during transportation in the event of an accident.

Comprehensive car insurance : This type of insurance will pay for all accidents that occur. Comprehensive car insurance also offers two types: Insurance for the car and insurance for the car's contents.

How much does car insurance cost?

The premium for compulsory civil liability insurance for automobiles is stipulated in Circular 04/2021/TT-BTC of the Ministry of Finance as follows:

Cars not used for transportation services:

*Cars with less than 6 seats to more than 24 seats: From 437,000 VND to 1,825,000 VND, depending on the type.

*Vehicles carrying both people and goods (pickup trucks, minivans): 437,000 VND.

Cars that provide transportation services:

*Vehicles with less than 25 seats: From VND 756,000 to VND 4,813,000, depending on the type.

*Car with over 25 seats: VND 4,813,000 + VND 30,000 x (number of seats - 25 seats).

*Vehicles carrying both people and goods (pickup trucks, minivans): 933,000 VND.

Cargo vehicles (i.e. trucks):

*Trucks from under 3 tons to over 15 tons: From 853,000 VND to 3,200,000 VND.

Above are the regulations on auto insurance. We hope to have provided useful information for readers to refer to and equip themselves with the necessary knowledge.

Danchoioto magazine always updates the latest information related to the automobile industry. Readers can visit the website https://danchoioto.vn to find useful information.

(Article and photos: Duong Hung)

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