The concept of insurance varies in different parts of the world. What happens in the European countries is that the driver of a vehicle gets insured, which is not the case in Thailand. Here in Thailand, the vehicle is insured in place of the driver.
Car Insurance in Thailand
Let’s get into the basic of car insurance in Thailand. First of all, it is important to know about the ‘Government Insurance’ for cars known as Compulsory Third Party Liability (CTPL). This is a compulsory insurance policy that every vehicle must have in Thailand. The coverage under this insurance plan is inclusive of medical expenses to the victims of an accident that took place on the road. If a car gets damaged in an accident, this insurance will not provide any coverage for that. Those drivers who do not have up-to-date CTPL might end up paying huge fines if caught while driving. Paying tax for your car is also important in Thailand.
Another effective type of car insurance in Thailand is voluntary insurance. Drivers in Thailand are highly recommended to get this voluntary car insurance cover. There are four types of divisions of this car insurance plan, namely Class1, Class 2, Class3, and Class 3+.
Drivers holding Class1 voluntary insurance will get damage coverage for every possibility, no matter who the responsible party is. In case you are planning to buy a car on finance, then you must have a Class 1 insurance plan. The lender will arrange for it.
If a driver holding Class 2 voluntary insurance is responsible for an accident or there is damage to a vehicle due to loss, fire or theft, then the coverage is paid out to the third party.
Class 3 and Class 3+ voluntary plans are completely third party coverage plans, however the latter comes with a restricted payment for the car.
The rate of road accidents in Thailand is very high and there are several factors responsible for that. Drivers with poor driving skills can still easily obtain driving licenses. Some even manage to get their driving license with very little or no formal instruction. Therefore, such drivers have little training or experience behind the wheel, and hence, the chances of accidents are quite high in Thailand. In addition to that, very few drivers have voluntary insurance coverage. It is always advisable to drive safely. Lack of adequate skill and training in driving can be fatal. Though accidents can happen, having car insurance provides the peace of mind that comes from knowing you will be well looked after.
Finding the right car insurance provider is also very important in Thailand. There are numerous insurance companies that offer different plans for vehicle insurance. The coverage is definitely more comprehensive in a high-rate insurance plan, in comparison to low-rate plans. Before you buy a policy, be sure to do the right research to find the plan that meets your needs.