Read about the overview to purchase car insurance in Thailand, as well as the cost and coverage options.
Why is car insurance important to have in Thailand? With over 60,000 incidents reported each year, no matter how carefully you drive, you are always at risk of being involved in one. Luckily, just over a dozen insurance companies offer a variety of car insurance options providing the necessary coverages.
To make the process easier for you, we’ve put together a quick guide about buying car insurance in Thailand.
You have two options when it comes to car insurance in Thailand. These include Compulsory Third-Party Liability Insurance and Private Insurance. All cars and motorcycles registered in Thailand are required to have Compulsory Third-Party Liability Insurance, which is more commonly known as Por Ror Bor.
Compulsory Third-Party Car Insurance (CTPL) Also known as Por Ror Bor, CTPL is a type of insurance mandated by law for all vehicles in Thailand. It only provides basic coverage on injury and death caused by accident. You also need to renew it annually through the Department of Land Transportation, car insurance companies, or a third-party agent. It is normally bought in conjunction with the payment of an annual car tax.
Private Car Insurance Private car insurance is much more flexible than CTPL, and it provides more coverage. Even the most basic policy includes coverage for third-party property. There are five types of private car insurance in Thailand, categorized using the numbers 1, 2+, 2, 3+, and 3.
Accidents, theft, and third-party property damage are all covered by Type 1 insurance, which is the most expensive. In contrast, type 3 insurance is the most affordable option, but it provides the least coverage.
As we mentioned above, private car insurance in Thailand is divided into 5 types.
Type 1 Type 1 car insurance is the most expensive and comprehensive type of insurance available. It protects you from all kinds of accidents and risks. It’s also the only type of insurance covering accidents that don’t involve a third party, such as running into a wall, colliding with a dog, or getting a scratch. Some insurers require you to pay an excess, while others may not.
Type 2+ This insurance is the second-most expensive car insurance in Thailand. Its coverage is similar to Type 1 insurance, but it excludes incidents involving a third party. With this type of car insurance, your car is usually sent to third party independent garages for repairs.
Type 2 Type 2 is similar to Type 2+ insurance in terms of pricing, but it does not cover collisions. Only a few insurance companies currently provide it.
Type 3+ Type 3+ car insurance provides coverage for road accidents, collisions, and third-party property damage. The main difference between Type 2+ and 3+ is that with type 3+, you are not protected against theft, fire, flood, or terrorism.
Type 3 This is the most basic type, covering only medical expenses and third-party liability. It is mostly popular among old and low-valued cars.
Each insurance company provides a different level of coverage at a different price. It’s essential to find a provider who can provide you with the coverage you need for a reasonable price.
These are the basic coverage that car insurance in Thailand usually offers.
Theft – You will be covered if your car is stolen. However, if your vehicle is stolen due to your own carelessness, such as forgetting to lock it or parking it in a hazardous location, you may not be covered by theft protection coverage. The insurance limit will also be based on the vehicle’s age.
3rd Party Property Damage – This coverage covers the other driver’s car in case of an accident. It is most likely preferred by the policyholder because you’ll only have to worry about fixing your own vehicle after an accident rather than worrying about the other party.
One-party Accidents – This pays for accidents that occur without the involvement of a third party, hitting a wall or a dog, scratching a structure, or crashing into a tree are examples of this. The cost varies depending on your insurance plan.
Medical Costs – Medical expenses incurred as a result of car accidents are covered by all types of insurance. If you’re the one who caused the accident, the coverage amount is likely to be higher. Insurance companies require a medical receipt for reimbursement unless you go to a partner hospital. Car insurance, health insurance, and family insurance can all help with medical expenses. Regardless of the type of insurance you use, the amount of coverage will be the same.
Fire/Flood – Any unanticipated floods will be covered under this policy. Insurers, on the other hand, may refuse to pay your claim if you drive through flooded areas on purpose. You can only file a claim for flood damage if it was not your fault.
Collision Coverage – If your car is damaged as a result of a collision with another vehicle, collision coverage pays for the repairs. Pay close attention to the collision coverage section of your insurance policy, as more expensive plans will allow you to have your car repaired at your car’s manufacturer’s official garage, whereas the less expensive plans send you to independent garages.
Third-Party Personal Injury – If you are hit by a car while walking down the street, you have the option of seeking compensation from both private and compulsory car insurance. All types of insurance include 3rd Party Personal Injury coverage as long as the accident is caused by a vehicle.
Exclusions may differ from one insurer to the next. Here are some of the most common exclusions that may result in your claim being denied by your insurance company.
Unauthorized Driver – This varies depending on the insurance package. Some packages may cover every driver as long as they have a valid driver’s license and is not intoxicated while driving. In contrast, others may only cover a specific driver who is allowed to drive that specific car.
War – Car insurance companies may deny claims resulting from war and protest, whether or not you live in a high-risk area. You are not covered if the damage is caused by war events.
Invalid Driver’s License – Insurance companies will not cover drivers who do not have a valid driver’s license.
Leaving the Scene of an Accident – If you cause an accident and then flee the scene, your insurer will not cover your expenses. This is a felony in Thailand, and you will be prosecuted.
Driving While Intoxicated – A person with a blood alcohol concentration (BAC) of more than 50mg is considered drunk under Thai law. It will not only result in insurance claims being denied, but it also carries the risk of being fined and/or imprisoned.
With over 60,000 incidents reported each year, you are always at risk of being involved in an accident.
The costs of each insurance policy will differ because they are all unique. The cost of car insurance is determined by the policy and coverage included; however, prices for car insurance typically range from 5,000 baht to over 7,500 baht for better premiums. You can also check to see if the price changes by looking at the following:
Add-Ons – Car insurance add-ons provide additional coverage not included in the basic policy. This can consist of daily income compensation, travel allowance, asset coverage, tire & liquid in the car, and consolatory compensation.
Pay Per Use – This concept is similar to a prepaid cell phone plan, the car will be covered for the specified number of days per period. The disadvantage of pay-per-use insurance is complexity. To be covered, the prepaid Thaivivat application must be turned on before driving and then turned off. If you’re driving in an area with poor internet service, you’ll need to call your insurance agent and let them know what time you wish to depart.
No-Claims Bonus – Most insurance companies in Thailand offer no-claim bonuses, which can be discounts on renewal rates for those who have made no claims, or just a few minor claims, during the previous year. This is available mainly to those who purchase Type 1 car insurance. The renewal rate, on the other hand, would increase if claims are made multiple times in the same year.
Deductible – Deductible is the amount you agree to pay the insurer if you file a claim. It can help you save money on car insurance cost and are appropriate for major accidents. However, you will not be able to file a claim for minor damages, such as scratches. It cannot be waived, so it would lower the overall insurance cost. Each insurance company offers a different amount like excess. Usually, deductible ranges from 1,000 to 5,000 baht. Make sure to read the policy carefully because the terms “excess” and “deductible” are often misunderstood in Thailand, even by insurance providers. This is because, in Thai, they have the same word.
Driver Specification – The age of the driver has a significant impact on the amount of the discount. With a limit of 2 people per vehicle, car insurance premiums can be reduced by 5% to 20% per year by specifying the driver. As the driver gets older, the discount increases. A driver between the ages of eighteen and twenty-four is eligible for a 5% discount, while those over 50 are eligible for a 20% discount. (The discount only applies to the premium price, not any additional fees).
Many insurance companies allow you to file a claim online. If you have the claim form from the insurance, you can send it to the insurance company right away. After you submit your claim, the garage will take care of everything and set a date for you to pick up your vehicle. You should obtain a claim number for monitoring purposes after submitting. The following is a list of documents that are typically required for filing a claim.
– Copy of the first page of a bank account book, if there’s any compensation. – Copy of valid driver’s license. – Copy of insurance policy. – Copy of the passport’s first page. – Copy of vehicle’s registration.