Purchasing insurance for cars, trucks, and motor vehicles is a crucial way for owners to mitigate risks during operation. Insurance helps protect the legal and financial interests of all involved parties, including vehicle owners, drivers, passengers, and third parties. However, with multiple insurance options available, not everyone fully understands their benefits—even experienced drivers.
Car and truck insurance is a contractual agreement between the vehicle owner and the insurance provider. The owner pays premiums periodically, and in return, the insurer compensates for damages related to people, property, or transported goods, according to the policy terms.
There are two main categories:
Insurance for car and trucks
This insurance protects third parties who suffer damage caused by the vehicle owner in traffic accidents. It is legally required in Vietnam.
According to regulations under Decree 168/2024/NĐ-CP, drivers without valid insurance may be fined 400,000 – 600,000 VND.
Mandatory insurance for trucks and cars
This is not mandatory but highly recommended. It covers repair or replacement costs when the vehicle is damaged.
Covered risks:
Premium calculation:
Insurance Premium = Insured Value × Rate (%)
The higher the premium, the greater the compensation coverage.
This voluntary insurance protects people inside the vehicle.
Coverage:
The premium and coverage limits depend on the agreement between the buyer and the insurer.
This insurance is especially important for businesses transporting high-value goods.
If goods are damaged due to the vehicle owner’s fault, the insurer will compensate according to civil liability regulations.
Coverage scope:
Compensation includes:
Compensation limit:
Total compensation = Liability limit × Damaged cargo weight
1. Legal compliance
Certain insurance types are mandatory. Without them, drivers may face fines, vehicle impoundment, or license penalties.
2. Financial protection
Vehicles are high-value assets. Insurance reduces financial risks in case of accidents or damage.
3. Operational peace of mind
With insurance, vehicle owners can:
When insured, you can receive:
Additional optional benefits:
