Bangkok--27 Jan--Penner Madison
Like many countries, it is compulsory for vehicle owners in Thailand to have car insurance. You will be required to have at least a Compulsory Motor Insurance (CMI or PorRorBor) policy. CMI is a pre-requisite to annual car registration and required by Laws with a set premium and costs of CMI depends on type of vehicle.
You can buy CMI from the local Department of Land Transport Office (DLT), from car insurance companies and from brokers, including online (such as at DirectAsia.co.th). The only information required is the Passport number and car detail.
CMI however,only covers third party liability, which means injury to other drivers and their passengers, up to the limit prescribed in the law.You can buy additional Voluntary Motor Insurance(VMI) to enjoy greater protection and peace of mind.
Buying voluntary car insurance
There are more than fifty insurance companies and dozens of financial institutions offering car insurance in Thailand. Products and price are generally similar, in part due to a regulatory tariff, which ensures that premiums charged are within a minimum and maximum tariff.
In Thailand, voluntary insurance varies from full comprehensive cover to more limited covers and are referred to as Types:
- Type 1: Also known as full Comprehensive Insurance,this is the most popular voluntary cover owing to a high frequency of vehicle damage in Thailand. Type 1 insurance covers Own Vehicle and Third Party Property Damage and Bodily Injury and loss due to Fire and Theft and Natural Disasters like flood. It also specifically covers Window Breakage and Towing expense.
- Type 2+:A similar cover to Type 1, but with a limit to cover on Own Vehicle Damage and excluding Own Vehicle Damage due to Self-Accident (e.g. driving into a car park wall).
- Type 3+: Covers Third Party Property Damage and Excess Third Party Bodily Injury as well as a limited coverage for Own Vehicle Damage due to Collisions only.
- Type 2:Commonly referred to in other countries as Third Party, Fire & Theft, Type 2 coversThird Party Property Damage, Excess Third Party Bodily Injury and loss due to Fire and Theft.
- Type 3: Covers thecosts of Third Party Property Damage and Excess Third Party Bodily Injury.
Extra covers like Personal Accident (“PA”)and Bail Bond, which covers the cost of bail if you happen to be arrested after an accident, are often packaged with the above products. Be aware in that case that you may pay extra premium even if you don’t want these covers.
You may get to choose whether to have your car repaired at your preferred workshop (e.g. dealer garage) or at the insurer’s panel of workshops. Some providers also provide the choice of a Policy Excess,however this is not widely promoted.
If you buy a new car in Thailand on finance, you may find it a challenge to choose an insurance provider you know and are comfortable dealing with in the event of a claim. This is because prescribed particular insurance plans are often sold together with car finance. Given little choice, new car buyers can end up with expensive insurance, even if it is promoted as “free” by the dealer. Whatever the promotion, actually all car insurance policies in Thailand have a real premium charge under the regulatory tariff, which must be stated on the Policy Schedule and this premium will include commission payable to the seller.
If you are paying cash for a car, are buying a second hand car or are coming into the second year of new car ownership, you will find much greater freedom of choice of car insurance.
Motor insurance premiums
Below is a simple table of factors that insurance providers in Thailand usually take into account when calculating the premium.These are not rules. Insurers will use judgment for each insurance application.
Insurers in Thailand give most weight to the factors relating to the vehicle itself: Model Type, Engine Capacity, Engine Type, Year of Manufacture
Some providers will seek more detail about drivers e.g. age, gender, family status, vehicle usage, claims history and will use statistical experience to provide more accurate premiums.
No Claim Bonus (NCB), or No Claim Discount (NCD)
If you have a No Claim discount in your home country, a Thai insurer may at their discretion, consider this. “NCB” as it is referred to in Thailand, should provide a discount between 20-50%.
Buying Online
A new trend is browsing for and purchasing car insurance online. This enables you to check and compare covers and pricing and is increasingly popular owing to its direct and instant nature.There can be an added benefit for non-Thai speakers that online information may be presented in English.
Do some research on the internet, call up or visit auto insurance providers and compare policy terms to ensure that you are choosing a plan that matches your needs at a fair price.
For all the information you need to know about buying car insurance in Thailand with DirectAsia.com, please visit DirectAsia.com Thailand, or call our friendly Thai and English speaking staff on Tel: 0-2627-7777.