If you’re researching car insurance products and wondering about the consequences of driving without coverage, this article is for you. We’ll provide answers to all your questions regarding insurance requirements and the penalties for being uninsured.
Is Car Insurance Mandatory?
Compulsory Third Party Liability Insurance (CIT) is a crucial document that all vehicle owners must possess when engaging in traffic in Vietnam. It serves to protect their rights and the rights of others in the event of an accident.
The Fine for Not Having Car Insurance
The penalty for driving without car insurance is outlined in clause 11, article 21 of Decree 123/2021/ND-CP. Violators can face fines ranging from 400,000 VND to 600,000 VND. Specifically, these violations refer to drivers of cars or similar vehicles who do not possess valid compulsory third-party liability insurance.
Failure to carry car insurance while driving can result in fines as per the law.
Automobile Liability Insurance Coverage Limits
In the event of an accident, the insurance company will provide compensation to the affected party (third party) on behalf of the vehicle owner. The extent of this compensation is clearly specified in the insurance certificate/contract, as stated in Article 4 of Circular 04/2021/TT-BTC:
- Material damage caused by a motor vehicle: 100,000,000 VND in one instance.
- Personal injury caused by a motor vehicle: 150,000,000 VND per person per accident.
Do You Need Additional Insurance Plans?
Besides compulsory motor vehicle liability insurance, you might consider purchasing additional coverage to enhance your protection in case of collisions or accidents. These plans often include benefits such as new replacement insurance, parts theft insurance, water damage insurance, and original garage repair insurance. Choose the one that suits your needs.
The price of additional coverage will vary depending on the specific conditions you choose.
Important Considerations When Buying Car Insurance
Here are some important things to keep in mind when purchasing car insurance:
- Compare car insurance packages from reputable companies like Bao Viet, Bao Minh, PVI, PTI, available on EZChoice. This will help you evaluate fees, benefits, and incentive programs to make an informed decision.
- Take note of the list of authorized garages provided by the insurance company. This will ensure convenient and prompt repairs and maintenance for your vehicle.
- Carefully consider the deductible when selecting an insurance package. While a high deductible may lower the purchase cost, it also means you’ll receive minimal compensation in the event of an accident, and vice versa.
We hope this article has clarified the penalties for driving without car insurance. If you have any further questions or require detailed assistance, please reach out to email@example.com for immediate help!