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  • Car Insurance in Vietnam: A Comprehensive Guide to Protecting Your Vehicle

Car Insurance in Vietnam: A Comprehensive Guide to Protecting Your Vehicle

Tam Huynh, Editor-at-largeJune 20, 2023July 15, 2023

Estimated reading time: 3 minutes

When it comes to purchasing car insurance in Vietnam, it’s crucial to understand the intricacies of the process to ensure you are adequately protected. In this article, we will provide you with valuable insights on buying car insurance, including important considerations and lesser-known aspects of coverage. With Vietnam’s traffic chaos and the emerging car insurance industry, it’s essential to navigate the options and fine print of the three-part car insurance policy to safeguard yourself effectively.

Focusing Beyond Property Damage When Dealing with Car Insurance

While many Vietnamese car owners primarily focus on property damage coverage, it’s important to delve deeper into the available options. Understanding the coverage possibilities allows you to make informed decisions when purchasing or renewing your policy.

Replacement, Purchased, or Amortized Value

The declared value of your vehicle determines the refund you receive from the insurer. Considering the high taxes and fees associated with luxury cars in Vietnam, accurately assessing the value is crucial. We explore the implications of taxes and fees and how they affect your insurance coverage.


This is part 2 of a 3 part series on car insurance in Vietnam. Did you know the Vietnam car insurer loss ratio is 160% and what they are doing about it?

What are the Risks with getting Car Insurance in Vietnam

Flooded Engine and ‘Thủy Kích’ (Water Strike)

While most insurance contracts cover engine-related issues and towing, the optional ‘water strike’ add-on is necessary for comprehensive protection. We discuss the implications of floods on your vehicle’s engine and the importance of opting for coverage that addresses this specific risk.

Car Insurance Coverage: The Fine Print Matters

Unlike countries with long-standing insurance laws and consumer protection measures, Vietnam has no specific insurance regulations. It’s essential to carefully review the terms and conditions of your policy to understand the extent of your coverage.

Coverage While Driving Only or Anytime?

We shed light on the absence of insurance laws in Vietnam and emphasize the importance of reading and comprehending the contract before signing. We explore scenarios where coverage may not be provided, such as when your vehicle is parked or in a parking lot, highlighting the need for optional covers to safeguard against potential damage.

Third-Party Liability: Compulsory but Insufficient

Vietnamese traffic laws impose a minimum cover cost for third-party liability. However, this minimum limit may not adequately cover property damage, bodily injury, or death resulting from a car accident. We discuss the limitations of compulsory coverage and the potential risks associated with insufficient protection.

Ensuring Comprehensive Coverage for Drivers and Passengers

Unfortunately, there is currently no satisfactory insurance option available in Vietnam for drivers and passengers. We delve into the limitations of existing coverage and the industry’s focus on car property insurance rather than comprehensive protection.

The Importance of Professional Insurance Advice

Given the complexities of car insurance in Vietnam, it is advisable to seek professional insurance advice. We emphasize the significance of consulting insurance advisors who understand the market, insurance options, terms and conditions, and the practices of different insurers. Additionally, staying updated on insurers’ changes, claims history, and client servicing strategies is crucial for making informed decisions.

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Previous: Living in Vietnam: Navigating Expectations and Contributing to Growth
Next: What is the Best Way to Send Money to Vietnam?

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