If you have a car in Thailand, another big issue you need to consider is how to choose the right car insurance company.
There are easily over ten options available and each option seems to be good. So, which company should you choose then?
In this article, let’s take a look at our insider tips to easily help you pick the right car insurance company.
Insurance Company Overview
First things first, let’s take a look at an overview of insurance companies in Thailand.
Two well-known companies are Bangkok Insurance and Viriyah. They are known for having good support and claim services.
On the other hand, they are often more expensive than other options. Their coverage limits and conditions can also vary by plan.
Sompo and Aioi are other good options. Sompo has offered Honda-branded insurance products in Thailand, while Aioi Bangkok Insurance is part of the Aioi Nissay Dowa/MS&AD group.
Other than that, you have Muang Thai, Tokio Marine, Dhipaya, and Thanachart.
Muang Thai and Tokio Marine plans and prices are comparable. At the same time, Dhipaya and Deves tend to be cheaper than other companies. But they are harder to claim as well.
One of the cheapest plans we can find is provided by Roojai.com. The plans work okay but you need to do everything on your own through their application.
Understand the Claim Procedure
Many car insurance companies outsource insurance representatives. When you have a road accident and call an insurance company, the insurance representative who comes to the scene wearing a company jacket might not be actually working for that insurance company.
Instead, they may work with an insurance law firm that provides this service to insurance companies.
What this means to you is that your experience in dealing with an insurance company is going to vary significantly depending on the insurance representative, who might actually work for a third party company.
I once made a claim with a certain insurance company. I didn’t have a good experience with the first insurance representative who came to the scene. He didn’t have enough experience and needed to call his supervisor every time I asked a question.
So, in the end, I told him that I will contact the insurance company again. I called them again on the same day and another insurance representative came.
It turned out that this guy was really good and everything went well.
This is one of the reasons why you always hear bad reviews of all insurance companies on the internet, even well-known companies like Bangkok Insurance and Viriyah. It often comes down to the representative that you meet.
Ask the Right Questions at the Garage
After you get the claim form from the insurance representative, you can give it to a garage and they will contact the insurance company directly to make the claim on your behalf. They will also send a quote with a list of parts that need to be repaired or replaced.
If the insurance company is good, they should quickly approve the list and the garage can start the repair process right away.
On the other hand, they may delay the process or cut the budget of your repair costs, which decreases the quality of the process as a result.
Therefore, before you choose any insurance company, it’s best to first talk to a garage that you would plan to go for repairs and maintenance and ask them for a recommendation on the top insurance companies that they have experience with.
By asking this question, you will also automatically know which insurance companies they accept, since they may not work with certain ones, or which ones they are happy working with.
You can ask the same questions to 3-4 garages near where you live.
Don’t Buy Online without Talking to a Broker or Representative
Although you can buy insurance online through many insurance websites, we do not recommend buying any plan without talking to a broker or representative.
The main reason is that before buying insurance, a good insurance company should ask for pictures of your car or send their representative to take pictures of your car first before giving you an insurance certificate.
That way they will know of any existing scratches or damage to your car.
On the other hand, if the insurance company does not take pictures or ask for them, and just takes your money, it’s also possible that they won’t approve your claim.
Take Premiums on Social Media with a Grain of Salt
Social media is a big part of our lives now. You might be tempted to check prices on the internet or ask questions on social media about the premiums that people pay.
While it can give you an idea of how much people pay for their insurance, you should not fully trust it.
Normally, people tell how cheap their plans are without telling why. Their plans can be cheap because:
- They have high deductibles
- It specifies the name of the driver
- They can only send their car for repairs at a third party garage, not an official garage of their car’s brand
You can read this article on how to decrease your car insurance premiums here.
Check Financial Statements
Because of COVID-19 insurance losses, several insurance companies in Thailand had their licenses revoked.
So, if you want to be sure that your insurance company won’t go bankrupt, you should check the financial statements of the company you are planning to buy insurance from.
It’s very easy to find their financial statements online. Many insurance companies publish annual reports or financial statements online, and listed public companies publish regular statements. You can just type “company name + financial statement” in Google.
Then, take a look at their assets, debt, profits, and losses. If it looks bad you should avoid them.
Buy through a Broker
Most Thais buy car insurance, or even health insurance, through a broker. And there’s a good reason for it.
The car insurance market in Thailand is very competitive, so car insurance brokers may give you a discount in order to attract new customers. This means you are likely to get a cheaper plan than buying directly from the car insurance company.
To give you an idea, I checked the insurance premiums for my car. The official representative from Viriyah quoted me 24,000 baht for type 1 insurance while CheckDi quoted me 22,000 baht for the same plan.
In addition, a broker, especially someone that you know personally, may recommend certain options that can decrease your premiums.
It isn’t hard to find a broker in Thailand. Many people have an insurance license. You can ask around your network. Maybe one of your friends is a broker but you just do not know it.
One thing you should keep in mind is that brokers can overly promote the insurance company from which they get the most commission. So, you should not necessarily fully trust their recommendations.
Instead, do your research first by asking garages or your friends before getting a plan from a broker.
Which Company Should I Get Then?
If you are okay with paying high premiums, it’s hard to go wrong with Bangkok Insurance or Viriyah.
If you want to go with other companies, it’s best to talk to garages near you and ask them for a recommendation. Then, check the financial statements of the company.
Please note that there is no best insurance company in Thailand. One of the reasons is that it can depend on which insurance representative you meet during the claiming procedure.
There are also many people who keep changing insurance companies after making a claim. This is because the insurance company tends to increase your premiums significantly after you make a claim.
Certain companies may also give you a discount if you stay with them with no claim record. But there is no guarantee on that.
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