Thailand has two primary types of car insurance and sometimes it gets a little confusing on what is covered by each type. The two primary types are Thailand first class car insurance, also known as Type 1, and type 2 car insurance.
For foreigners, the easiest way to explain the difference is that your Type 1 insurance is the equivalent of comprehensive, of full-coverage, insurance. Type 2 insurance is similar to liability insurance, which is famous for reducing insurance costs in the USA.
Let’s take a look at a few of the things a typical first-class insurance policy will cover.
Self Accident Coverage – This is an accident where only your car is involved. If you run into a tree, you are covered.
Accident With Road Vehicle – If you are in a crash with another vehicle, you are covered, regardless of fault.
Car Theft – If your car is stolen, you will be paid to have your car replaced. This is not true on many Type 2 insurance policies and is one of the big reasons Type 1 insurance is a better choice.
Fire Coverage – It may seem unlikely your car will burst into flames, but you should realize it is one of the leading causes of claims in the USA and other countries. A small wire fire in your engine can cause substantial damage.
Flood Coverage – A anyone living in Thailand knows, we get a lot of flooding, you need to make sure your car is protected in case you are caught in high water.
Accidental Death or Injury – Type 1 insurance helps pay for you and your passengers medical or death expenses.
Third Party Death or Injury – Coverage for expenses to someone outside your car who is injured in an accident with your vehicle.
Third Party Property Damage – Payment for damage to someone’s property caused by your car.
Bail Bond – If you happen to get arrested after an accident, the bail bond coverage will help you get out of jail so you can hire an attorney.
Type 2 insurance usually only covers damage to other people’s property. There is another form of protection called Type 2+ which increases the coverage of Type 2 insurance, bringing it closer to Type 1 but at slightly lower prices.
The most significant difference between Type 1, Thailand First Class Car Insurance, and Type 2+ is in self-accidents. If you are the only car involved in an accident, your vehicle is not covered. Damage to the other person’s property will be included, but you will pay all expenses to have your car towed and repaired.
We should discuss one other factor about Type 1 insurance. It usually allows you more flexibility on who repairs your car. You can have a dealer, or premium repair shop, fix your car. There is typically an age stipulation on this feature. Some policies only allow you premium service during the first 3 years, other policies for up to 7 years. After that time, you will need to have your car fixed by the insurance company’s approved providers.
Thailand first class car insurance (ประกันภัยรถยนต์ชั้น 1) is the better choice for protecting yourself unless you are on a very tight budget.