How much does pickup truck insurance cost? This is a common question for many truck owners looking to protect their vehicles. Traffic accidents always carry the risk of significant damage, and repair costs can reach tens of millions of VND. Therefore, comprehensive insurance is a necessary choice. This article will provide detailed information about pickup truck insurance costs, benefits, and things to consider when purchasing.
Pickup truck insurance policy
Why Buy Pickup Truck Insurance?
The number of pickup trucks on the road is increasing, leading to a higher risk of collisions and accidents. Repairing and replacing parts on modern pickup trucks can be expensive. Even a small scratch can cost several million VND. Comprehensive insurance will help you reduce the financial burden when unexpected incidents occur.
Some common causes of vehicle damage:
- Inexperienced driving.
- Theft, robbery, and vandalism.
- Accidents due to natural disasters (storms, floods).
- Flooding causing damage to the engine and interior.
- Traffic collisions.
- Deteriorating traffic infrastructure.
How is Pickup Truck Insurance Cost Calculated?
Insurance Premium Formula
Pickup truck insurance premiums are usually calculated based on the value of the vehicle and the premium rate set by the insurance company.
- New vehicle: The vehicle value is calculated according to the manufacturer’s list price.
- Used vehicle: Vehicle value = (% remaining quality) x (new vehicle value). The % remaining quality is determined based on the number of years of use:
- 1-3 years: 75%-90%
- 3-6 years: 65%-75%
- 6-10 years: 50%-65%
- Over 10 years: 35%-50% (few insurance companies accept vehicles over 10 years old).
The premium usually ranges from 1.1% – 1.5% of the vehicle value, depending on the insurance terms. For example: A pickup truck worth 500 million VND, with a premium rate of 1.1%, would have an insurance premium of 5.5 million VND/year.
Factors Affecting Insurance Cost
The insurance premium depends on several factors:
- Vehicle age.
- Vehicle type and model.
- Intended use (personal or commercial transportation).
- Insurance company (each company has different rates).
Benefits of Pickup Truck Insurance
Basic Benefits
Pickup truck insurance covers physical damage due to:
- Collision, impact, rollover, falling, sinking, fire, explosion.
- Natural disasters (storms, floods, lightning).
- Total theft of the vehicle.
- Costs of preventing further losses (e.g., buying a fire extinguisher to put out a vehicle fire).
- Towing costs (up to 10% of the insured value).
Additional Benefits
In addition to the basic benefits, you can purchase additional benefits:
- No depreciation for replacement: Replacement of new components without having to pay any additional difference compared to the old components.
- Repairs at authorized garages.
- Flood insurance: Covers the cost of repairing engine damage due to hydro-locking.
- Partial theft insurance.
- Rental car cost insurance: Supports the cost of renting a car during the repair period.
- Damage insurance outside of Vietnam (applicable to some countries).
Conclusion
Pickup truck insurance is an effective financial solution to help you feel secure when driving. Choose an insurance package that suits your needs and budget. Contact reputable insurance companies for detailed advice on pickup truck insurance costs and the associated benefits.
