Car insurance is a financial tool which can protect you and your family from financial burden should you get involved in a car crash or accident.
The most basic feature of good car insurance is that it can cover some of the costs for when you accidently injure a pedestrian or destroy property while driving your car. It may even cover some or all of your medical expenses or the costs of having your car repaired in case of a car accident.
Car insurance is vital to protect yourself from the many financial risks associated with driving your own vehicle. We’re constantly reminded of how dangerous driving can be, with frequent news about serious road accidents. Car insurance is a contract between you and an insurance company to cover the cost should your car get into an accident. You may file a claim with your car insurance company should you be affected by any of the risks that are covered by your policy. Your role in this contract is to pay the premium for your car insurance and to make sure you understand the terms of your coverage.
Compulsory Motor Insurance
All vehicles in Thailand are required to have third party liability insurance. This Compulsory Motor Insurance (CMI or Por Ror Bor) is mandated by the Protection for Motor Vehicle Victims Act B.E. 2535. This basic insurance provides up to 80,000 THB for medical expenses and 300,000 THB for death or permanent disability to third parties involved in a car accident. The Por Ror Bor’s coverage is limited, so you will need a comprehensive insurance to protect you better.
Car insurance providers in Thailand offer products that can be categorized into three basic levels.
1. First Class Insurance. This type of insurance provides the most comprehensive covers and may cover the vehicle, the life of the driver and the passengers and the medical expenses incurred when the car is involved in an accident.
2. Second Class Insurance. This type of insurance provides collision coverage for the cost to repair the car if it is involved in an accident.
3. Third Class Insurance. These car insurance products cover the life of the driver, medical expenses for the driver and the passengers and third party liability coverage. Filing a Claim The process for filing a claim on your car insurance can differ depending on your insurance provider. You should read the claim procedure stated in your policy. In general, you’d need to contact your insurer immediately in the event of a motor accident. You will also need to contact the traffic police or local official so they can produce the documents you’ll need to file a claim, especially if the accident isn’t your fault. If there is another driver involved you’ll need that person’s contact information. Always keep a copy of your insurance policy in your car and keep the number of your car insurance provider saved on your phone.
Car insurance is a necessary expense for car owners but that doesn’t mean you have to spend a huge amount for this protection. There are steps you can take to lower the costs of car insurance. Choose a Cheaper Car One factor to that affects your car insurance premium is the value of your car. A brand new car means insurers will have to pay more for repairs in an accident.
A fancy sports car will also cost more to insure. To balance the risks and the payout, a car with less value can help you bring down your car insurance costs.
Pay Your Premiums Annually Paying for your yearly insurance coverage in one lump sum can be heavy on the pocket initially but this can save you money in the long run. Paying your premium on a monthly basis may mean having to pay a little higher than if you paid for it one lump sum.
Drive Carefully and Take Advantage of No Claims Bonus Some insurance companies have a ‘No Claims Bonus’, which is a discount on your premium if you make no claims on your insurance plan. Just another reason for you to drive safely! Information provided by All Risks Insurance Hua Hin