Learn more about car insurance as a new driver in Thailand.
After you’ve passed your driving test, you’ll likely want to get on the road as soon as possible. However, whether you have already found your first car or you’re still considering your options, you must start thinking about your car insurance first.
Compulsory car insurance is a legal requirement for anyone who drives and owns a car, whether you are a new driver or have been driving for many years. If you are found to drive without compulsory car insurance, you could be fined or even face court prosecution. Car insurance, on the other hand, is purchased based on the amount of coverage required and is not required by the Thai government.
If you’ve just passed your driving test, your car insurance is likely to be more costly than a more experienced driver, insurers choose to raise the price because they consider you to pose a higher risk since you don’t have enough experience in driving.
Also, since car passengers at the age of 24 and below have a higher accident fatality rate than people at the age of 25 and older, the cost can be especially high for new drivers under the age of 25. Since it is your first policy, you have had no opportunity to build up a no-claims discount, which could help reduce the cost of your car insurance premium further down the line.
There are certain measures you can do to help keep costs down, such as decreasing your mileage and avoid making car modifications.
There are 3 main types of car insurance available to new drivers in Thailand. These include:
It is advisable that you take out your own insurance, as it will allow you to build up a no-claims discount of your own.
There are some ways you can decrease your car insurance premium, here are some of the most common ways:
High Deductible – Because your deductible is inversely proportional to your payment, the lower your deductible, the higher your insurance premiums will be. To save money on their insurance policy, those looking for lower car insurance rates should consider raising their deductible.
Look out for professional/occupation discount – Some insurance providers can give you a discount if you work in a certain industry. Teachers, doctors, and police officers, for example, are statistically less likely to file a claim. An insurer will almost always need evidence of profession, such as a photocopy of your diploma.
Avoid modifying your car – You may want to customise your car to make it your own, but keep in mind that any modifications that deviate from the manufacturer’s standard will make repairs more difficult or expensive. As a result, claims will be more expensive, resulting in higher premiums.
Low mileage – You may be able to save money if you just use the car for short distances. The average annual mileage for a driver is most likely about 7,400 miles, so if you drive less than that, you might be able to save money. However, always declare your mileage as accurately as possible, as underestimating it can result in your insurance being cancelled.
Yes, you can be added to your parent’s car insurance policy as a named driver or purchase group car insurance for your family. Keep in mind that it might make their policy more expensive as your experience will be taken into account. In addition, you won’t earn your own no-claims discount. Your parents could also lose their no-claims discount if you have an accident.
Therefore, it is advisable that you take out your own insurance, as it will allow you to build up a no-claims discount of your own.