Motorbike Insurance in Vietnam for Foreigners (2026): The Compulsory Policy, What It Pays, and What It Won't
What motorbike insurance you legally need in Vietnam in 2026, what the compulsory third-party policy costs (about 66,000 VND a year) and pays out, why it does nothing for your own injuries, the fine for riding without it, and how your licence decides whether any insurance pays at all.
Vietnam's compulsory motorbike insurance costs less than two bowls of phở. That's the good news, and also the problem. A lot of foreigners who rent or buy a bike assume the little certificate tucked under the seat means they're insured. It means the person you hit is insured, up to a limit, and only if you were riding legally. Your own hospital bill is a separate question entirely.
The one policy the law requires
Every motorbike owner in Vietnam has to carry compulsory civil liability insurance, usually called TNDS (from *trách nhiệm dân sự*). The rules are in Decree 67/2023, which took effect in September 2023, and they cover petrol and electric motorbikes alike.
The premium is fixed by the decree: 55,000 VND a year for bikes of 50cc or less and 60,000 VND for anything bigger, plus 10% VAT. In practice you pay 60,500 or 66,000 VND, roughly US$2.50. Policies run for one to three years. Big insurers such as Bảo Việt, PTI, Liberty and BIC sell it, and so do banking apps and e-wallets. Most now issue an electronic certificate, and traffic police accept it on your phone as an alternative to the old paper slip.
Riding without a valid certificate is a fine of 200,000–300,000 VND under Decree 168/2024, in force since 1 January 2025. The fine lands on the rider, whoever owns the bike.
Related reading: Health Insurance in Vietnam for Expats and Remote Workers (2026): Public Cover, Private Plans and What They Cost · Paying by QR Code in Vietnam as a Foreigner (2026): VietQR, Which Apps Work, and When You Still Need Cash
What it actually pays
TNDS is third-party cover. If you cause an accident, the insurer pays the other side for:
- injury or death: up to 150 million VND per person, per accident (about US$5,700)
- damage to their property: up to 50 million VND per accident (about US$1,900)
Anything above those limits is yours to pay. For a scraped car door or a fall that sends a cyclist to a clinic, the limits are usually enough. For a serious injury treated at a private hospital, they may not be.
What it doesn't cover is just as important. Your own injuries and damage to the bike you're riding, rented or owned, are outside it.
The licence clause
Here's the part that catches foreigners. Under Decree 67, the insurer can refuse to pay if the rider had no valid licence for that vehicle. It also won't pay for property damage if the rider was over the alcohol limit.
So the licence question decides whether your compulsory policy is worth anything. Vietnam recognises a foreign licence only when it comes with an International Driving Permit issued under the 1968 Vienna Convention, with the motorcycle category stamped. Permits issued under the 1949 Geneva Convention, which is the kind the United States issues, aren't valid here. The other option, if you live here, is to convert your home licence into a Vietnamese one. Our Hà Giang Loop guide goes through the licence rules in more detail.
If you ride without one of those, assume the compulsory policy won't help you, and your travel insurance probably won't either.
Travel and health insurance: where the real money is
The bill that hurts after a motorbike crash is usually your own hospital treatment, and TNDS has nothing to say about it. That has to come from travel insurance (for a trip) or a health plan (if you live here).
Most travel policies treat motorbikes as a special case. Common conditions are a licence valid for that bike in the country you're in, a helmet, and in some policies a limit on engine size or a requirement to buy an add-on. Find the motorbike or "motorcycling" section of your policy before you rent, not after. If it says the licence must be valid locally, the 1968 permit point above applies.
If you live in Vietnam, the same check applies to your health insurance. Our health insurance guide for expats covers what public and private plans pay, and which motorbike clauses to look for.
Renting or buying a bike
When you rent, ask the shop to show you the certificate, paper or on their phone, and check the plate number and expiry date. Since the fine falls on you, a missing certificate is your problem at a checkpoint.
When you buy, the policy may still be in the previous owner's name. Buying a new one in your name costs 66,000 VND, which is easier than arguing about it later.
Roadside sellers sometimes offer "motorbike insurance" for 10,000 VND or so. Vietnamese newspapers have reported for years that these slips are usually a voluntary accident policy for the rider and passenger. They don't replace TNDS, and police can still fine you if that's all you show. If the price is well under 60,000 VND, it isn't the compulsory policy.
Insurers also sell voluntary extras: accident cover for you and your passenger, and physical damage or theft cover for the bike itself. Accident cover is cheap. Theft cover is mostly offered on newer bikes.
FAQ
How much is compulsory motorbike insurance in Vietnam?
66,000 VND a year including VAT for bikes over 50cc, and 60,500 VND for 50cc or less. Policies can run for one to three years.
Does compulsory motorbike insurance cover my own injuries?
No. It pays other people you injure (up to 150 million VND each) and their property (up to 50 million VND per accident). Your own treatment needs travel or health insurance.
Is my International Driving Permit valid in Vietnam?
Only if it was issued under the 1968 Vienna Convention and covers motorcycles. Permits under the 1949 Geneva Convention, including those issued in the United States, aren't recognised.
Last checked: 25 October 2026. Exchange rates approximate. General information, not legal or insurance advice; your policy wording decides what's covered.
Sources
- LuatVietnam: Decree 67/2023/ND-CP on compulsory motor vehicle insurance (English)
- Vietnam Law Magazine: new rules on civil liability insurance for motor vehicle owners
- LawNet: liability limits under Decree 67/2023
- LuatVietnam: fine for riding without motorbike insurance (Vietnamese)
- VOH: electronic insurance certificates are valid at police checks (Vietnamese)
- Báo Pháp Luật: warning about cheap roadside motorbike insurance (Vietnamese)
- Vietcetera: why many foreigners ride illegally in Vietnam without realising it (2026)
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John Le · Hanoi local · writes about money, work and everyday admin in Vietnam. Spotted an outdated price? Tell us and we will update it.
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