Car insurance is a type of insurance that combines various insurance types, including those for people, property, and goods transported, related to automobiles.
Compulsory car insurance is a type of civil liability insurance that all car owners must participate in according to regulations. If checked by traffic police or competent authorities and the car owner does not have compulsory car insurance, it will be considered a violation of the law and penalties will be imposed according to regulations.
Additionally, when purchasing compulsory car insurance, regardless of where you buy it, you should also read the regulations, coverage scopes, and exclusions of this compulsory car insurance to ensure you receive compensation from the insurance company.
The premium for compulsory car insurance will vary for different types of specialized vehicles, regular vehicles, load capacities, and seating capacities.
Currently, the car insurance market offers 4 popular types of insurance: compulsory civil liability insurance for vehicle owners, civil liability insurance for vehicle owners regarding goods transported on the vehicle, vehicle material damage insurance, and insurance for passengers and drivers/co-drivers.
Among these, compulsory civil liability insurance for vehicle owners is the type that all individuals or organizations owning a car must purchase under Vietnamese law. The remaining 3 types of insurance are entirely voluntary for customers, based on agreements with insurance companies.
**Types of Car Insurance**
**Car Civil Liability Insurance**
This insurance covers compensation to third parties for damages to property and persons caused by your vehicle during traffic.
* **Participants:**
All motor vehicle owners participating in traffic within the territory of Vietnam.
* **Coverage Scope:**
The insurance will compensate the vehicle owner for 2 main types of damages:
* Bodily injury, death, and property damage to third parties caused by the motor vehicle;
* Bodily injury and death of passengers under a passenger transport contract caused by the motor vehicle.
* **Exclusions:**
* Intentional damage caused by the insured;
* Driver intentionally fleeing the scene of an accident;
* Invalid driver's license;
* Indirect damage consequences;
* Damage from theft or robbery after an accident;
* Force majeure events such as earthquakes, terrorism;
* Special assets such as gold, silver, precious stones, cash, valuable papers, antiques...
* **Benefits:**
* **Compulsory Car Insurance Liability Limits:**
* For personal injury: VND 100,000,000 / person / accident;
* For property damage: VND 100,000,000 / accident.
Additionally, the premium rates for vehicle owner's civil liability are specifically regulated for types such as: Non-commercial vehicles; Commercial transport vehicles; and Cargo vehicles.
Premiums are also specifically divided for vehicle types with different seating capacities and load capacities. Driving school vehicles, taxis, and specialized vehicles are also distinguished and regulated in detail.
**Vehicle Material Damage Insurance**
This insurance covers damage to the vehicle's material components caused by collisions, overturning, falling objects, engine damage due to water ingress (hydrostatic lock), etc.
Vehicle material damage insurance is voluntary but very necessary. By purchasing vehicle material damage insurance, the insurer will cover the costs of repairing damages, making you more financially prepared and confident in using your vehicle.
* **Participants:**
Applies to automobiles and specialized vehicles, including: Cars, tractors, semi-trailers or trailers pulled by cars or tractors; construction machinery; agricultural and forestry machinery, and other special-purpose vehicles participating in road traffic.
* **Coverage Scope:**
The insurance is responsible for compensating vehicle owners for material damages caused by natural disasters, unexpected accidents, and unforeseen events in the following cases:
* Collisions (including impact with objects other than motor vehicles), overturning, falling, submersion, complete vehicle loss, or being hit by falling objects;
* Fire, explosion;
* Natural disasters;
* Total loss of the vehicle due to theft or robbery.
* **Benefits:**
In addition to compensation, the insurance will also reimburse the vehicle owner for necessary and reasonable expenses agreed upon in the insurance contract to perform tasks as required and instructed by the insurer when a loss occurs (within the scope of insurance), including costs for:
* Costs to prevent further losses;
* Costs for towing and transporting the damaged vehicle to the nearest repair facility, but not exceeding 10% of the sum insured.
**Hydrostatic Lock Insurance**
Customers who purchase the hydrostatic lock insurance clause within their car material damage insurance will be compensated by the insurance company according to the contract terms when a hydrostatic lock event occurs.
* **Participants:**
Applies to automobiles and specialized vehicles, including: Cars, tractors, semi-trailers or trailers pulled by cars or tractors; construction machinery; agricultural and forestry machinery, and other special-purpose vehicles participating in road traffic.
* **Coverage Scope:**
* If you drive into a flooded area and the engine stalls without restarting, the vehicle body and material damage insurance company will compensate and pay up to 70-80% of the repair and maintenance costs for components like cylinders, pistons, rings, gaskets, oil changes, air filters, etc. The remaining costs will be borne by the customer.
* However, if the customer intentionally attempts to restart the engine to drive through a flooded area, leading to severe damage, the insurance company may refuse compensation.
* **Benefits:**
The insured amount will be compensated and paid according to the contract provisions when hydrostatic lock occurs.
By purchasing this hydrostatic lock insurance package, customers will receive consultation and roadside assistance to mitigate the incident and its consequences to the lowest possible level.
*Where to Buy Compulsory Car Insurance?**
There are many places to buy car insurance on the market, so people often wonder where to buy compulsory car insurance to ensure they receive all their rights and benefits.
The best way to purchase quality, fast, economical, and convenient insurance is to choose a reputable and trustworthy car insurance company in the market.
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