Buying car insurance in Thailand is a must if you’re planning to drive a car there. We understand that trying to figure out your car insurance policy, the best coverage, and a reputable insurance company can be a bit daunting if you’ve only just arrived in this part of the world. We’ve prepared this handy guide to help you understand what sort of car insurance policy options you have, the types of car insurance coverage you can get, and what exactly is included in these. We’ll also let you know how to choose a good insurance company, and how to apply for your compulsory motor insurance policy. Let’s get started!
Why You Need Car Insurance In Thailand
There may be a few daredevils that drive without valid car insurance in Thailand but take it from us that this is an unnecessary risk you should not be taking. Firstly, it is illegal to drive without compulsory motor insurance, and you could get into trouble with the Thai police for doing so. Secondly, there is a high risk of you getting into a car accident no matter how carefully you drive.
There are an estimated 60,000 car accidents in Thailand every year, with dense urban areas like Bangkok having the most of them. The sheer volume of traffic on the roads is one factor, with poor testing standards being the other. There are many people, especially those from rural areas that have learned to drive a vehicle without any standard training.
You will quickly experience poor signaling and lane cutting being major contributors to the high number of car accidents. These issues are compounded due to motorcycles constantly weaving in and out of traffic. If you don’t want your time in Thailand to get ruined by getting into a disastrous car accident, make sure you have a proper car insurance policy before you get into the driver’s seat.
Your Car Insurance Policy Options
Let’s do a little car insurance comparison of the two policy types you can get in Thailand: Compulsory Third-Party Liability Insurance and Private Insurance.
Compulsory Third-Party Liability Insurance (CTPL)
As the name suggests, the Third Party Liability Insurance also known as ‘Por Ror Bor’ is compulsory. It provides the most basic coverage to legally drive a car on the streets of Thailand according to the Road Protection Act. Only medical expenses are covered by the CTPL which also needs to be renewed annually.
In the case of bodily injury, the CTPL can cover up to 80,000 Thai baht, and in the case of death, up to 300,000 baht if the driver is not at fault. However, if the driver is found to have caused the car accident, the insurance claims will be covered up to just 30,000 baht for bodily injury and up to 35,000 baht for death. A copy of the police report is needed to prove that you did not cause the accident if you wish to obtain full insurance coverage.
The CTPL is very affordable at 650 baht annually for a regular car, which can be renewed at any Department of Land Transport office, your car insurance company office, or even third-party agents. You can receive your insurance claim directly from the hospital or by providing the medical receipt, insurance policy document, and a copy of your passport to your insurance company.
Many drivers believe that an insurance policy covering their medical expenses is sufficient, and will only get Compulsory Third-Party Liability Insurance. When you buy car insurance, keep in mind that CTPL does not provide any coverage for third-party property damage. If the fault was yours, you will be responsible for paying for those damages out of your pocket. This also means that third parties can take advantage of the situation and overcharge the cost of repairs that you will be forced to pay.
Aside from the basic coverage for your medical expenses, you may need additional assistance at the scene of your car accident. You may need to deal with various parties like the traffic police, and the opposing party who may attempt to shift the blame to your side. Your car may also need to be towed to a garage for repairs.
The CTPL won’t help you with any of these things. A private car insurance policy on the other hand will provide you with an insurance representative that will not only visit the site of the car accident to help you but will also be knowledgeable about the details of your insurance coverage.
Private Car Insurance
When you buy car insurance in Thailand, a private insurance policy is highly recommended since even the cheapest options you can get will offer some coverage for third-party property damages. And as mentioned earlier, a representative from the insurance company will meet you at the scene of the accident to provide professional roadside assistance, saving you from having to argue with other parties present.
Let’s look at the various types of private insurance you can get for your vehicle in Thailand. Type 1 offers the maximum coverage you can get and is the most expensive. Type 3 is the cheapest option you can go for.
Type 3
A type 3 car insurance policy will provide coverage for medical expenses, third-party personal injuries, and third-party property damage. It is a very viable option for older vehicles and cars that are of low value. Your insurance premium will be a very affordable 2,500 to 3,000 baht.
Type 3+
Next up is Type 3+ which provides additional coverage by including things like road accident protection and collision coverage. Type 3+ vehicle insurance will cost you about 5,000 to 5,500 baht annually.
Type 2
Type 2 car insurance plans will add coverage for situations like fire, flood, and terrorism. However, curiously this type does not include car collision coverage. Your insurance premium will be about 4,000 baht. While this vehicle insurance type is cheaper, many people will go for the 3+ which covers collisions, or the even better 2+ which offers additional coverage.
Type 2+
This car insurance type has everything already mentioned in Type 2 but with the addition of now covering collisions. Your annual premium will be about 6,000 to 6,500 baht. The only thing Type 2+ doesn’t cover are self-accidents. These are accidents that don’t involve a third party. For example, you could accidentally drive your car off the road to avoid hitting a stray animal or reverse into a ditch by mistake.
Type 1
A Type 1 insurance package will cover damage from even self-accidents, making it easily the most comprehensive insurance coverage you can purchase in Thailand. This insurance type will cover you from most types of major accidents and mishaps you will encounter on the roads. Naturally, the insurance premium will be expensive at about 18,000 to 18,500 baht annually.
Usually, Type 1 car insurance is only available for vehicles that are less than seven years old, although it may be possible to get coverage if the car has been maintained in excellent condition, and hasn’t been involved in any significant accidents so far. Type 1 car insurance packages will also repair your vehicle at the officially authorized dealership garages, ensuring you get the best service and authentic parts.
Things Included In Your Car Insurance Coverage
With so many private insurance types to consider, you may be confused about which type of coverage you need, based on what you’re willing to spend. Let’s go through some of the common terms involving car insurance, and what they mean.
Collision Coverage
When your car insurance package includes collision coverage, your claim will cover the cost of repairs in the case of a car accident with another vehicle. If the collision is so damaging that your car is deemed irreparable, you will be able to receive a 70% to 100% insurance limit of payout depending on the terms and conditions of your policy. Car insurance Type 1, 2+, and 3+ have collision coverage. The only difference is that Type 1 will repair your vehicle by an authorized agent.
Medical Expenses
All car insurance types will cover medical fees. Your insurance claims will cover less if it is deemed that you caused the accident. You have the option of collecting your claim after getting treatment by submitting your medical bills to your insurance company or letting them handle the whole process by visiting a partner hospital specified in your policy. Even if you don’t have Thailand car insurance, your family or health insurance plan will also cover medical bills.
Theft Protection Coverage
Theft protection is there provided if you have taken all steps to ensure your car is secure. If it is discovered that your car was stolen because you forget to lock the doors, you will receive a lower payout. Type 1, 2, and 2+ car insurance types all offer theft protection.
Car Fire/Flood
Similar to theft protection, the insurance company pays these claims only if you’re not responsible for the car fire or flooding. For example, if you have parked the car in a place that gets flooded without any warning, you will be covered. On the other hand, if you wreck the car by intentionally driving through a flooded area, the insurance company can reject your claim. This type of car insurance coverage is only for Type 1, 2, and 2+ packages.
Third-Party Property Damage
Third-party property damage is essentially the same as collision coverage but applied to the third party involved in the accident. If you have this coverage in a Type 3 insurance plan, you don’t need to pay for their repairs, only your own.
Third-Party Personal Injury
All car insurance types including CTPL will cover third-party personal injuries.
Things Not Included In Your Car Insurance Coverage
Now let’s look at a few things that are not covered under your car insurance, and will give car insurance companies the chance to reject your claims even in the event of an accident.
Driving Without A Driver’s License
You need to carry a valid driver’s license at all times while driving your vehicle. Fortunately, it is not very difficult for even foreigners to obtain a new license in Thailand. All you have to do is visit the nearest Department of Land Transport office, fill in the application form, submit the supporting documents, and pass the theoretical and practical driving tests.
Driving Under The Influence
If you’re found to have a blood alcohol concentration of more than 50mg, you will be considered driving under the influence under Thai law. This would mean your insurance claim will be rejected, in the case of any accidents while you were drunk. Furthermore, you might also get fined, or even worse, be imprisoned.
Unauthorized Driver
Some car insurance companies will have policies that cover any driver as long as they have a valid license and are not driving drunk. Other policies will specifically list an authorized driver that is covered by it. Be sure to check whether your policy covers other drivers before handing over the steering wheel to them.
Incorrect Purpose
Incorrect purpose means any attempt to do something you’re not supposed to do with your car. For example, if your car is built for a specified amount of passengers, carrying any more will count as an incorrect purpose. Another example would be transporting heavy goods in a car that is not designed for such a purpose, or installing unauthorized LPG gas systems.
Leaving The Scene Of An Accident
If you do get into an accident, do not under any circumstance leave the area before your insurance company agent or police instruct you to do so. It is considered a crime to leave an accident, and not only will your claims be rejected, but you may also be called in for a court hearing.
Act Of War
Many insurance companies do not provide any coverage if your car is damaged during an act of war or street protest.
Car Insurance Policy Terms To Be Familiar With
When choosing car insurance, you should familiarize yourself with the following terms which will always be of great use to you while making your claims.
Excess
Sometimes to make a claim, you will need to pay a fixed amount known as the ‘excess’. This will usually start from about 1,000 baht and is higher for lower premiums. The excess is required to be paid when there is no third party involved or if the damage was caused by the driver hitting a pole, a tree, or animals. This excess can be waived in some circumstances like if the damage was caused by the fault of another driver.
Deductible
The deductible is often confused with the excess but they are not the same. The deductible is also a fixed amount that you have to pay when making a claim, with the difference being you cannot waive it under any circumstances. The benefit of a deductible is that you can significantly lower the total car insurance cost you pay annually. A deductible is only applicable in claims where there is massive damage, and not for things like minor scratches. Many people mix up the deductible and excess, so pay attention to what exactly is there in your car insurance policy.
No Claim Bonus
The ‘no claims bonus’ is essentially the discount you receive for your next annual insurance premium payment if you haven’t made any claims during the past year. This is usually a benefit that Type 1 insurance policyholders will receive.
Dealership Vs. Independent Garage
When getting a brand-new car insurance policy, you will be asked whether you wish to have your car repaired at an official dealership or an independent garage. This means that if your car is a Nissan, it will only be repaired by the official Nissan garage if you go with the dealership option. You will get the benefit of genuine parts, fully-qualified certified mechanics, and a warranty for the repairs. The downsides are that there may not be many dealerships if you’re in a rural part of Thailand, and the queues may be longer as well. The insurance premium will likely be expensive as well.
If you go with an independent garage, there is no guarantee of genuine parts or the quality of the repair work. However, these garages are far more numerous, especially when you’re far away from urban centers like Bangkok, and the repairs will be cheaper. Of course, it’s entirely up to you whether you want to risk getting fake parts, or a substandard paint job for a lower premium. Always do your research into a garage if you’re not going with the official dealership.
Driver Specification
You can specify the driver and receive a 5% to 20% discount on your premium. You can usually specify up to two drivers for a car, and the discount you receive will be determined by the driver’s age. This discount does not apply to the excess amount. And obviously, you have to ensure that only the authorized drivers are the only ones driving the vehicle unless you want your claims to be rejected.
Pay Per Use
This is a novel approach to car insurance that is similar to a mobile phone voice or data package offered by the Thaivivat company. Your car will be insured for a specified number of hours for the given period. For example, a 30-day package could offer you 144 hours. This means that you could drive your car for about three to five hours every day and receive coverage for 30 days. If you run out of hours before the 30 days are over, you can top up more hours like you would a phone data package.
The benefit of using this type of insurance plan is that you will be paying less than the usual premium. The downside is an additional hassle on your part since you need to keep the insurance monitoring application turned on while driving. This could be annoying when traveling to places where there is poor internet connectivity.
Add-Ons
Many insurance companies will often provide add-ons to incentivize you to pick their policies. These could be various things like bail bond coverage, loaner cars, compensation for having your items stolen from your car, towing services, and more depending on the company and the package you choose.
Things To Consider When Selecting A Car Insurance Company
You will quickly realize that there are over 20 insurance companies in Thailand that are providing vehicle insurance. When trying to decide which one to go with, always look for the following details on their website before applying for your compulsory car insurance.
Reputation Of Car Insurance Company
Smaller car insurance companies will often attempt to attract customers by offering lower premiums and novel packages you haven’t heard of before. However, it is always recommended that you go with a more established brand that has been around for years instead of a flashy new company that’s just entering the market. You can check online reviews to check their history of paying claims and the experiences of other insurance policyholders.
English Speaking Customer Support
If you can’t speak Thai, then you will need a company that provides roadside assistance and a customer hotline that employs fluent English speakers. One way you could check these services before applying for your car insurance is to simply call their customer service hotline and ask a few questions about their insurance policies. If the agents that you speak to are polite, fluent in English, and forthcoming with their answers, you can feel a bit confident about this company.
Convenient Garage Locations
It’s always a good idea to check what the partner garage locations are for an insurance company. If your vehicle is brand new, you might want a policy that includes the official dealership garage to keep it in good condition. This might be an issue if you’re located in a rural area. Check what garages are available through your insurance company and see if any seem trustworthy to repair your vehicle.
How To Apply For Car Insurance In Thailand
To apply, you will need to submit the following documents. These include a copy of your car’s registration certificate, a copy of your passport’s first page, a copy of your driver’s license, and a copy of your previous insurance policy if you’ve had one before. For Type 1 coverage, you will also need to provide pictures of your car from certain angles, although some insurance companies will most likely send their agents to inspect it for themselves.
Where You Can Drive After Getting Your Car Insurance In Thailand
After you get your vehicle insurance policy sorted, what would you like to do? If you’re a golf enthusiast, you might wish to drive down to the sunny island of Phuket in the south of Thailand and check out a few golf courses there. Not only is the weather there perfect for a few rounds of golf, but the drive-through scenery that includes lush tropical jungle, misty mountains, and sandy beaches is quite an experience. To learn more about golfing, read Phuket Golf Holidays.
If you’re into martial arts, then Phuket is another great destination for watching and learning Muay Thai, the modern combat sport that was born in Thailand. Drive to Soi Ta-iad, the popular Muay Thai and fitness street on the island, or enter one of the must-see Muay Thai stadiums in Phuket to see how their local fighters are performing. There’s also much to see in Phuket like the colorful streets of the Old Town, and hundreds of restaurants to taste the local cuisine.
If you ever need help getting around Phuket, then Ushup is the local guide you’ve been looking for. We can show you all the scenic routes to drive through, how to reach popular tourist spots, and where the best Muay Thai gyms are located. Visit Ushup to experience Phuket like never before!
FAQs
Is Car Insurance Required In Thailand?
Yes. Compulsory car insurance is required by law in Thailand before driving a vehicle. The minimum requirement is Compulsory Third-Party Liability Insurance (CTPL) also known as ‘Por Ror Bor’ which covers medical expenses for injuries and death. Private insurance is optional but recommended to receive third-party property damage and collision coverage for your car.
Which Car Insurance Provides The Most Coverage In Thailand?
Type 1 car insurance provides the best coverage with third-party property and personal injuries, collision coverage, medical expenses, theft, fire/flood, terrorism, and self-accidents all being included in these plans.
