Car insurance in Thailand
Good car insurance is in Thailand absolutely necessary. The many motorcycles make the traffic picture more chaotic than what we are used to in the Netherlands, the traffic rules are different and other road users sometimes do unexpected things. So it doesn't matter how well you drive yourself, an accident is in a smaller corner here than in the Netherlands.
It is nice to know that one phone call is enough to count on the service and back-up of a professional insurance company that works quickly and efficiently for you, both at the time itself and in the further claims settlement. Therefore, make sure that you end up with a company that supplies everything in English and that also has an English-speaking emergency center.
Which car insurance is best for your situation, of course depends on several factors such as the age and value of the car, but also on how well you want to be insured.
A brief summary of the different types of insurance and what exactly they cover:
Compulsory Third Party Liability (CTPL)
This is the government mandated insurance for any motor vehicle and it only covers bodily injury or death of the other party. However, the cover is minimal, driving around with this insurance alone therefore entails a very high risk that you will have to pay (considerably) extra after an accident.
The premium for this insurance is 645 (four-door) or 967 (two-door) baht.
You always need the compulsory in addition to one of the following insurance policies!
3rd class – This insurance can be compared to the WA insurance from the Netherlands.
This covers property damage and third party medical expenses. In addition, there is also cover for medical expenses for its own occupants plus bail bond.
2nd class – This insurance has the same coverage as 3rd class, but theft and fire of your own car is also covered.
3 + 1 – This insurance covers the same as 3rd class, but damage to your own car is also covered up to the insured amount in the event of a collision with another motor vehicle whose identity is known. This insurance therefore does not cover if you have a single-vehicle accident or if the driver and details of the other motor vehicle are not known.
2 + 1 – This insurance covers the same as 3 + 1, but also theft and fire of your own car is covered.
1st class – This insurance is the very best, comparable to the all risks insurance as we know it in the Netherlands.
First class insurance is therefore the best in all situations and, measured by Dutch standards, relatively cheap.
Point of attention with first class insurance: pay attention to the maximum cover. First-class insurance that pays out up to 250.000 baht for damage to third-party property can get you in big trouble if you total a Toyota Fortuner.
Car insurance FAQs:
- Do those companies pay?
Contrary to popular belief, the insurance industry in Thailand is well regulated and reliable. So the answer is yes.
In practice, however, you do not have to pay yourself, but the garage is paid directly by the company.
- What should I do if I have a collision?
In some cases, it is sufficient to fill in a collision form. When in doubt about who is to blame or in the event of major damage: Call the emergency number of the insurance company stated on the policy. The emergency center then sends a "surveyor" to the site. This collects all data and prepares a report. This part is therefore significantly better organized than in the Netherlands. Regardless of whether or not a surveyor will be on site, it never hurts to take photos of the situation immediately after the collision.
- As a foreigner, am I not always to blame?
This is often said, but in practice it turns out to be really bad. In the event of a collision with a pedestrian or motorbike, the latter will sooner be given the benefit of the doubt, but in the Netherlands the weaker road user is also better protected, so that is not surprising.
Never forget: Your insurance company has no interest in you being blamed, it costs them money.
Unfortunately, it sometimes happens that your opponent comes up with witnesses who slightly distort the truth. In that case, don't worry and let the surveyor do his job. And if you are still found guilty, the insurance will pay, the only thing it will cost you at most is some No Claim Bonus.
- Do I have to pay something myself, directly or indirectly?
You have had a collision, the police arrive and they give you an “order” to pay the other party an X amount. Because he/she has to go to the doctor and can't work for a week because of you. Needless to say, the police have often already made a deal with the “victim”. But even if it's your fault, don't pay anything! You have just taken out the insurance for this.
- Can I drive in Thailand with my Dutch driving license?
The police will not accept it under any circumstances and there is only a very small number of insurance companies that do accept it. In principle, almost every policy states that the driver must be in possession of a valid driver's license. And a valid driver's license is a Thai or an international driver's license (which actually has to be converted into a Thai driver's license for stays longer than three consecutive months).
- Is a loaner car covered if my car is being repaired?
Unfortunately, this is not yet common practice. A few companies are reluctantly starting this, but for the time being all only in Bangkok.
How can I make my car insurance cheaper?
There are several options to make your first class car insurance cheaper.
1. Dealer Garage / Insurer Garage
There are two types of insurance that can be taken out. If you opt for a dealer garage, your car may be taken to the dealer in the event of damage. If you opt for an insurer garage, you must take your car to a repair shop with which the insurance company has a contract. The last option is about 20% cheaper. Each company has a nationwide network of these general damage repair centres, which generally deliver good quality.
2. Named drivers
It is possible to include a maximum of two names of drivers in the policy. This is therefore a good saving opportunity if you never lend the car. Should it happen that you let someone else drive and they cause an accident, you are still insured, but you must pay the first 6.000 baht yourself.
3. A standard excess
For those who hardly ever have anything to claim, a deductible may be interesting. An excess of, for example, 3.000 baht quickly reduces the premium by 2 to 3.000 baht. Of course, you only have to pay this deductible if you are at fault for a collision.
If there are any further questions on this topic, I'd love to hear from you.
My Thai driver's license was valid until 13-12-2010.
On that date I was referred to come back on 10-06-2011 for an extension.
Am I insured in the meantime?
Hello Mr Mathieu,
I have for a few questions:
1 – The premium for this insurance is 645 (four-door) or 967 (two-door) baht. Is this per year? and why car 2 door more expensive than 4 door?
2 – How much baht premium for 1 st class for 1 Toyota fortuner per year? and is that AA insurance company?
Hello Ana,
1. These amounts are indeed per year. Every motor vehicle must have this insurance, which is prescribed by law. That is checked when paying the road tax, then it must be demonstrated that this compulsory is there. Without compulsory, no road tax and therefore no new sticker with the year on it. A two-door is more expensive because it is not considered a sedan but a pick-up, so actually more of a commercial vehicle.
2. Is it possible to contact me via [email protected] send a scan of the car book and the current policy? If not, please contact me by e-mail so that I can collect all the required information.
An insurance taken out through us is not insurance from AA, but from 1 of the insurance companies operating in Thailand. We are “broker”, or intermediary. This makes no difference to the premium, the premiums are the same everywhere. The advantage we offer is that we work with many companies and are therefore able to choose the best option. Additional advantages are that you can communicate with us in Dutch and that we represent the interests of our clients in the event of a problem as a broker. And the latter obviously makes a difference, as a broker with many customers at a company, we are stronger than you are as a loner against a company. acting in its own interest.
Thank you for explaining …. I have to renew my insurance next week and will check exactly the who, what and how of my insurance.
Chang Noi
Hello Pim,
After looking into the small print of a few random companies and asking how this should be interpreted, I got 2 completely different responses.
One states very clearly:
it is illegal to drive even for 5 mins without a valid license. Therefore if you are not legally able to drive your insurance is invalid.
Another writes in the small letters at the exclusions:
Driving made by the person who has never been given of the driving license or has been given but disqualified by the effect of law or to use the driving license of motorcycle to be for driving of the motor vehicle.
Clearly different. Checked to make sure it really isn't a problem if the driver's license has expired, answer:
Once the customer has already got the driving license but it was expired. We would consider like he still has the driving license.
So there is no problem for the insurance however it has been expired for long time.
So it can go 2 ways. If you want certainty: look in the policy of the car insurance.
For absolute certainty: get a new one, certainly never a problem.
And another postscript to the expired driver's license question:
According to the OIC (Office of Insurance Commissions), which sets the national rules that everyone in the insurance industry in Thailand must adhere to, there is still coverage even if the driver's license has expired. This does not apply if it has been confiscated by the police or by the country's transportation department.
And if the OIC has this in the regulations, there is no discussion.
Hello Mathieu,
You wrote an excellent story about car insurance in Thailand. I completely agree with the content and conclusions.
Greetings from a former insurance expert,
Chris
Day Matthew.
Thank you very much for this information.
In the meantime I also have more clarity about the driver's license.
Reading Thai is difficult and I know that the driver's license is valid for 5 years. I went to the driving license issuing office on the day of issue.
Now it turns out that for convenience they have moved the validity to my date of birth.
So in my case it is valid for five and a half years.
I hope others can benefit from this too .
Yes, that's right, Pim, it is always done in such a way that the expiration date ends on your date of birth. Still something positive from the gentlemen civil servants because this is a bit easier to remember. Well done.
Dear Mathieu,
I have a question. You are no doubt familiar with the concealment article. I have the impression that here in the Netherlands insurance companies are very flexible when it comes to accepting new insurance policies. It's all about the premium. They must have a lot of that. So they are quite easy to accept new insurance policies because they still have the concealment article in hand.
Only when a claim is submitted will the application be thoroughly investigated. Has the customer completed the application correctly and completely and if they can catch you making a (minor) mistake, they will reject the claim by invoking concealment.
How does the Thai insurance company deal with this?
Hi Sam Loo,
There's not much to hide from auto insurance, so I'm assuming you're talking about health insurance here?
Well: In the field of health insurance, the Thai companies are very tough on this. You can count on it that the moment you end up in the hospital and it becomes really expensive, the application form will be thoroughly reviewed. When in doubt (and that usually stems from the doctor's report that they receive from the hospital), they even go back to your medical file in the Netherlands.
Some people sometimes consciously omit something to avoid an exclusion from the policy, with the thought in mind: if this bothers me later and it doesn't work out, then I'm lucky. If it turns out, well, then that ailment will not be paid.
But unfortunately it doesn't work that way. For example, if you are in hospital with a stomach problem and it turns out that you have concealed something about your lungs, the policy will be canceled immediately.
Never conceal anything, that can literally be life-threatening.
Dear Mathieu,
Thank you for your response. No, I am talking about insurance in general, because even when taking out a car insurance policy, an asiprant insured can - consciously or not - make a serious mistake. On the application form that precedes the conclusion of the insurance contract, many questions are asked of the prospective insured, for example whether he has been in contact with the law in the past 10 years, or whether his driving license has ever been revoked. If this is not mentioned on the application form, the insured person who is involved in an accident for which he is to blame is the loser. By invoking the concealment article, the claim is rejected.
It is therefore important that an intermediary discusses this properly with his customer, and draws his or her attention to the possible consequences of filling in an application form incorrectly or incompletely.
What about intermediary liability? In the Netherlands, errors made by the intermediary (contractor) are attributed to the insured
(client). Is this also the case in Thailand?
I am familiar with a case in which an insured had neatly stated on his application that he had once received a disability benefit, the basis of which was disability, but that he went back to work after a year.
Since he would earn less in his new job, he was paid a supplement. The basis of this supplementary benefit was therefore not based on incapacity for work, but on his partner's salary.
A short time later he became incapacitated again. In the end, the insurer offered him a lump sum payment of 200.000 guilders (it was still in the golden age) against final discharge, which he agreed to. Not much later he received a message from the insurer that they would not pay out anything. He would have concealed the supplementary payment on the application and if the insurer had known this at the start, they would not have accepted this insurance. This man was also wrong in court.
With this example I would like to emphasize once again that it is very important to fill in an application as completely as possible. After all, these insurers are all 'rats'.
Hi Sam Loo,
In Thailand there is no application form for car insurance, so little can be consciously concealed. That's why I initially thought the question was related to a different topic.
Outside of health insurance, questions are only asked on the application form for home insurance, for example. But those are usually 3 general questions: Is it insured elsewhere? Have you ever been refused or canceled an insurance policy? Has there been damage in the last X years? And that's it.
Some companies do use a questionnaire for big bikes with more far-reaching questions. And of course we always point out that this must be completed truthfully. The application forms to which this applies always clearly state what the consequences may be of filling in or omitting information incorrectly.
How is it regulated in Thailand in terms of intermediary liability?
If it concerns an incorrectly completed application form, the customer will ultimately be responsible because he signs for approval.
This will be a different story if the intermediary knowingly or unknowingly fails to do something that causes damage to the customer.
Insurers rats? Don't give them an opportunity to get out of something and nothing will happen. Read the small print and disappointments afterwards will be avoided.
Hi Mathieu,
I just wanted to bring this to people's attention and emphasize its importance once again. Good luck with the practice.
Hi Sam Loi,
And that is also the pleasant and good thing about this blog, which is not only fun but also instructive, partly due to the input of all commenters. You are clearly more versed in this matter and you rightly raise a very important point that will benefit every reader.
Hi Matthieu , I already mentioned it on the blog , can you take the bonus / malus of the car insurance from Europe to Thailand ?
my insurance is paid by the dealer for the first year, so I don't have to worry about it now, but in October next. Do I have to insure the car myself?
and then 50% bonus / malus can work in your favor…
how does that work here in thailand?
Hello Guyido,
Some companies are willing to bring an NCB from abroad into a Thai policy. It is important that the cancellation statement or the written statement regarding the accrued no-claim bonus of your European insurance is in English. It is best to scan the current policy and the letter from the European company about a month in advance and email it to us so that we can get started (without further obligations).
Dear Mathieu,
7 years ago I bought a new Mitsubishi Strada in Pattaya.
The dealer gave me a 1st class insurance policy for the first year
at the Ayudhya Insurance Company.
I have now accrued the maximum no-claim discount.
When I went to pay my premium last time at the office, I inquired if it was possible to transfer my accrued no claims discount to the new policy if I bought a new car, I was told that was not possible.
I would have to start all over again with 100% premium.
The dealer had already told me this, but because it is quite normal in the Netherlands that you take your no-claim with you when purchasing another car, I could hardly believe this.
Is this normal in Thailand , or do you have better insurance on offer ?
By the way, thanks for all the information on the blog.
Kind regards, Leo
Hello Leo,
Until recently, as your dealer describes it (no claim bonus on the car and not by name) was common. Now there are companies that do transfer no claim bonus to a subsequent car. If the company the dealer works with does not transfer a no claim bonus to a new car, then you will indeed have to start again with 100%. But since other companies do offer the option, you can ask how much discount you get if you take the car without insurance. If you then email us the most recent policy or, even better, a no claim certificate from the current company, together with details of the new car, we can sort this out for you.
Dear All,
I will soon be coming to Thailand-Hua Hin for three months, and in order not to depend on others, I want to rent a scooter for that period. Does anyone have one or more reliable addresses in Hua Hin for me, where I can rent a scooter with good insurance. When I read all those articles on this subject, it seems to me not unwise to be sure of good insurance. Maybe someone has good experiences with certain landlords?
fr.g. Edy
@Edy
In principle, a rental scooter will always have compulsory insurance. This covers medical expenses and a death benefit. However, the amounts covered are not high. Damage to third party property, such as a car you hit, is not covered at all. Also no damage to your own scooter.
A private individual can insure these risks additionally, but this is unfortunately not possible with scooters that are used for rental. You will therefore never find a rental scooter with good insurance. Drive carefully is the motto!
Matthew
Thanks for your comment. Completely clear. The previous times I rented a scooter in Hua Hin, I was naive enough to think that it was all right, with the insurance. I did ask every time I rented one if there was insurance and they always happily nodded yes. It was true, of course, but I never realized what it actually meant. Now I know.
As for Pim's reaction? Do you know someone with good insurance who wants to rent their scooter to me?
fr.g. Edy
Of course I know the people who have good insurance, but I assume that they do not rent out the scooter because they use it themselves. Perhaps one of the readers on this blog has something available (and everyone from Hua Hin reads here).
Day, E. van Dijk .
Through this blog I think you can find a farang in Hua hin who wants to rent out his scooter and otherwise know someone who does.
Almost every fahrang has good insurance.
Who knows, Matthieu has someone among his customers who does that, then you can be sure that you are in the right place.
Pim,
Thanks for your comment. As you can see I already asked Matthieu if he knows someone in Hua Hin.
Or if there are others who can help me with the rental of a scooter with good insurance?
fr.g. Edy
Hello Edy.
I'm busy for you, I know at least 3 people with 2 scooters that I will contact.
Just outside, there is a Dutchman here who also rents out, if he can offer you something, please let me know the name because he cannot be trusted.
You will hear from me soon .
Regards, Pim.
Edy's email has been sent to Pim, so that further trade and walking goes beyond the blog.