Every country has its policy terms that are conversant with the insurance providers and car owners. Knowing how the insurance policy is charged in Thailand before becoming a car owner is important. Therefore, before owning a car in Thailand, familiarize yourself with the below insurance policy terms whether you are buying a new or used car.
Whenever you would like to make a claim, the fixed amount you agree to pay the insurer is known as the deductible. A deductible can considerably lower the cost of your insurance. This doesn’t apply to small claims like scratches caused by a tree but to proper accidents. Deductible and excess are the same in Thai and are often confused by insurance representatives and policyholders. Read and understand your deductible/excess clause before signing.
Pay Per Use
Those who drive for only a few hours each day can choose the pay-as-you-go car insurance option. You can only use your car for a specified number of hours per day, as the pricing is lower than an average insurance policy. For the company to monitor usage, you will turn on an app before driving and turn the app off when you finish. It can be stressful if you are driving in an area where there is no internet signal as you will have to call and notify the company when you want to drive.
This highly favors the insurer because when you claim, you will increase the cost of the premium. When you don’t claim, you are rewarded by lowering your annual premium, therefore, you’ll end up fixing your car to avoid a rise in the premium. In Thailand, you will need to drive for a minimum of a year, claim-free, to get the bonus.
Based on history and age you can save up to 20% if you have a maximum of two named people on the policy.
The amount you pay out of your pocket when a claim is made is known as an excess. When no third party is involved, an excess is enforced but it is usually waived if the accident wasn’t your fault. The lower the insurance premium, the higher the excess.
Independent Vs. Dealership Garage
You may want all repairs to be done at the official dealership if you’ve bought a new car in the last 5 years. This means you have to wait longer to get your car fixed because dealerships are fewer, especially in rural areas, and also, it will result in a more expensive premium. Warranty guaranteed work, fully qualified mechanics, and genuine parts are the key benefits of a dealership. It’s a hit and miss for independent garages, therefore, if you find a good one keep it. Faster turnaround times, cheaper labor which keeps your insurance premium lower, and easy to find one in a remote area, are the benefits of an independent garage.
For coverage outside the regular items, there are extras that you can add on that are offered in various insurance policies. These may include; additional medical care, compensation for stolen goods, coverage for travel expenses incurred as a result of an accident, and coverage for a loan car.