Mandatory Car Insurance: A-Z Guide for New Car Owners

Owning a car is a significant asset, and everyone wants their beloved vehicle to be well-protected. One of the most crucial aspects of car ownership is purchasing insurance. You’ve likely heard of “mandatory car insurance,” but what exactly is it? Why is it necessary? And where can you buy it with confidence? All these questions will be answered right here!

Even if you’re a seasoned driver with years of experience, navigating traffic always carries unforeseen risks. As the saying goes, “into every life, a little rain must fall,” and no one can predict what might happen. While car seat covers can help protect your car’s interior, mandatory car insurance serves as a robust “shield,” safeguarding you from financial burdens in the unfortunate event of an accident.

What is Mandatory Car Insurance?

Mandatory auto third-party liability insurance is a type of insurance that car owners are required to purchase by law. This insurance helps compensate for damages to people and property caused by your car to third parties during traffic participation.

Illustration of mandatory car insurance policy

Simply put, when you purchase third-party liability insurance, if your car unfortunately causes an accident, the insurance company will step in to cover compensation costs for the victims on your behalf.

Why is Mandatory Car Insurance Necessary?

Many people wonder why it’s mandatory to buy third-party liability insurance. The reason is quite simple: it offers numerous benefits for both car owners and society:

• Financial Protection: In the event of an accident, repair and compensation costs can reach hundreds of millions of Vietnamese Dong. Third-party liability insurance helps alleviate your financial burden, preventing you from going “bankrupt.”
• Fulfilling Civic Duty: Purchasing third-party liability insurance is fulfilling your civic duty as mandated by the Law on Road Traffic.
• Contributing to a Safer Society: When all car owners participate in third-party liability insurance, it creates a collective “safety net” for society, reducing the burden on victims’ families and the government.

Expert Le Ngoc Minh, in his book “Decoding Car Insurance,” affirmed: “Third-party liability insurance is a prerequisite for building a safe and civilized traffic environment.”

Reputable Locations to Buy Mandatory Car Insurance

You can easily find points of sale for mandatory car insurance at car dealerships, and reputable insurance companies such as PTI Insurance, Bao Viet Insurance, Liberty Insurance, and more.

Illustration of a car insurance agency

Important Notes When Buying Mandatory Car Insurance

To purchase suitable third-party liability insurance, keep these points in mind:

• Choose a Reputable Insurance Company: Opt for insurance companies with a strong reputation, excellent service, and transparent claim procedures.
• Compare Premiums Between Companies: Third-party liability insurance premiums are regulated by the Ministry of Finance’s framework. However, each company may offer different incentives and policies.
• Understand the Terms and Conditions of the Insurance Contract: Before signing the contract, carefully read the terms and conditions, especially the cases covered and not covered by the insurance.

Car Insurance Guide: Beyond the Mandatory

In addition to third-party liability insurance, you can explore other types of car insurance such as collision insurance, passenger accident insurance, etc., to drive with peace of mind on every road. Furthermore, if you are planning a cross-country road trip by car, having comprehensive insurance coverage is extremely essential.

XE TẢI HÀ NỘI – Your Companion on Every Journey

“XE TẢI HÀ NỘI” is not only a provider of quality trucks but also a reliable companion, offering you useful information about car insurance.

Contact us via Phone: 0968239999, Email: [email protected] Or visit our address: No. TT36 – CN9 Street, Tu Liem Industrial Zone, Phuong Canh Ward, Nam Tu Liem District, Hanoi. We have a 24/7 customer care team.

We hope this article has provided you with helpful information about mandatory car insurance. Please share this article with friends and family to together be “safe – confident – steadfast” on every journey!