Renting a Car From Friend in Thailand, What are Insurance Requirements and Recommendations

[JiminLA]

Hi,

     I am here in Chiang Mai, and just got my Thai Driving License, and my Non-Imm VISA, so I need a car.  I can go the usual route of renting from a major car rental company near the airport, but I also have friends here renting out personal vehicles.  A major car rental company will cover all Collision Insurance, and you only need your own personal liability insurance, if you want, as a supplement.  If I rent from a friend, what insurance should the two of us have, since I am unfamiliar with Thai auto insurance law?  In America, in certain states, there is a clause where the owner of the car can take on the liability of the collision insurance, but not clear about what happens here.  If anyone could give me some advice, I would appreciate it.  I do not want to skimp on something as important as insurance.  I currently have medical insurance coverage, but I have not investigated what is covered in case of an automobile accident, which is usually covered by the auto insurance.  Also, since I will not, or probably can not, use my CC to expedite the deal, I will not have insurance coverage from them either.

 

Thanks,

Jim

[thainet]

I do the same, a friend rents one of my cars.

I just cover 'other drivers' on my MSIG Insurance. They don't have to be named, but can if you want to.

Have done this way for years...

So to the OP...you don'have to do anything, other than make sure you are covered on your friends insurance policy (and he should have 1st Class Insurance, with the Compulsory Insurance coverage paid also--645 baht a year).

Happy driving...

[scubascuba3]

It's probably the same additional insurance you can buy for rental cars which as standard aren't equivalent commerical comprehensive. Try insurers, maybe someone has a specific insurer

[4MyEgo]

16 minutes ago, JiminLA said:

so I need a car.

Personally, I would hire the vehicle from a reputable car rental place for the following reasons:

 

1) If the car is ridden off, you know the insurance company will cover it and if any damage they will fix it, you will be up for the waiver/excess of course, usually 10,000 baht unless you have travel insurance that includes that.

 

2) Car breaks down, they fix it and provide you with an alternate car asap.

 

3) No strain on the friendship if you have an accident, ride the car off, it gets stolen, it breaks down or if your friends insurance policy expired or didn't have any 1st class insurance, what happens then, and would he have a replacement car for you ready to go ?

 

Like I said, personally, I like to keep friendships at arms length from any transactions that could put pressure on those friendships.

 

At the end of the day, it's your call.

[JiminLA]

Thanks guys, I see one of you thainet, has experience in this area, and does what I was hoping you can do to insure a new/other driver of your vehicle.  I would be willing to pay them the extra amount if needed to make certain their insurance is in top shape.  Have you ever had to file a claim for an individual who drove one of your cars and had an accident, and what was involved in the settlement?  I ask, because maybe you've been lucky and never had to file a claim, and so the insurance company is none the wiser about you renting out your vehicles.

 

Thanks again,

Jim

[Kwasaki]

47 minutes ago, JiminLA said:

If I rent from a friend, what insurance should the two of us have

Just check you friend has 1st class insurance for any driver. 

Make sure there are no restrictions on how many years holding the Thai DL and it is not restricted to only 5 year full Thai DL holders. 

[thainet]

3 minutes ago, JiminLA said:

Thanks guys, I see one of you thainet, has experience in this area, and does what I was hoping you can do to insure a new/other driver of your vehicle.  I would be willing to pay them the extra amount if needed to make certain their insurance is in top shape.  Have you ever had to file a claim for an individual who drove one of your cars and had an accident, and what was involved in the settlement?  I ask, because maybe you've been lucky and never had to file a claim, and so the insurance company is none the wiser about you renting out your vehicles.

 

Thanks again,

Jim

Yes had  some small claims---no problems, but this my experience only..others maybe different.

One VERY IMPORTANT thing is the need for a Thai Licence.

Most insurance companies don't tell you this, but if reading the very small print it is usually a requirement to make a claim.

[4MyEgo]

16 minutes ago, JiminLA said:

Have you ever had to file a claim for an individual who drove one of your cars and had an accident

For what it's worth, I know a guy who had an accident in his own car, rear ended by a truck, driver in the truck drunk and on yaba daba doo.

 

Insurance company started negotiations with the cops and the driver, he received 200k less than what his car was insured for, that said, if you were to get the car from a reputable car rental place I am sure this would be avoided as it would be between the insurance company and the car rental place, just something to chew over.

 

Risk vs benefit ????

[Kwasaki]

22 minutes ago, thainet said:

Yes had  some small claims---no problems, but this my experience only..others maybe different.

One VERY IMPORTANT thing is the need for a Thai Licence.

Most insurance companies don't tell you this, but if reading the very small print it is usually a requirement to make a claim.

Yeah the OP said his just got his Thai DL so a 2 year one which is not a 5 year full one which the insurance company could use as a get out of pay in case of an accident.

 

He must insist his friend calls the insurance company to make sure OP is covered by giving DL details and get an email confirmation or letter.

 

 

[richard_smith237]

27 minutes ago, Kwasaki said:

Yeah the OP said his just got his Thai DL so a 2 year one which is not a 5 year full one which the insurance company could use as a get out of pay in case of an accident.

Why ??  A 2 year licence is still a valid Thai Driving Licence...   

Is there any stipulation in insurance terms and conditions (of any insurance) that the insured vehicle can only be driven on a 5 year licence ????   I’ve never read or heard of such a point. 

 

 

27 minutes ago, Kwasaki said:

He must insist his friend calls the insurance company to make sure OP is covered by giving DL details and get an email confirmation or letter.

Are you making this bumf up on the spot Kawasaki ???

 

IF the car is insured 1st Class for any driver, then its covered for any legal driver. 

 

I’ve swapped cars with friends plenty of times in the past...   A Thai Licence (any 2 or 5 year) and 1st Class (any driver) insurance is all thats needed. 

 

 

[JiminLA]

Thanks again everyone, and yes my first requirement would be to have my friend find out what their insurance company has to say about me, a valid Thai license driver.  I just want her to have it in an email record, or something written and signed, as opposed to just word of mouth that it's ok.  This would be a bad situation to find out too late that you are now liable for things even if it's not your fault.  However, since I was approached by three people already here, it seems to be standard practice, and like all things Thailand, a few thousand baht here or there, and all issues seem to disappear.  Unlike in my home country, where the lawyers for the insurance companies duke it out.

Cheers,

Jim

[richard_smith237]

2 minutes ago, JiminLA said:

Thanks again everyone, and yes my first requirement would be to have my friend find out what their insurance company has to say about me, a valid Thai license driver.  I just want her to have it in an email record, or something written and signed, as opposed to just word of mouth that it's ok.  This would be a bad situation to find out too late that you are now liable for things even if it's not your fault.  However, since I was approached by three people already here, it seems to be standard practice, and like all things Thailand, a few thousand baht here or there, and all issues seem to disappear.  Unlike in my home country, where the lawyers for the insurance companies duke it out.

Cheers,

Jim

The ‘have it in record’ is the Policy your friend holds.... 

 

On that insurance policy is everything that matters, the policy document is the only thing that matters. 

 

It is always advisable to have a Dash-Cam (forward and rear facing) - then you are protected against any potential extortion or false claims should you be involved in an accident. 

(Cam recommendation: Xiaomi-70mai Pro - which can be purchased from Lazada).

 

 

 

 

 

[MrJ2U]

2 hours ago, thainet said:

I do the same, a friend rents one of my cars.

I just cover 'other drivers' on my MSIG Insurance. They don't have to be named, but can if you want to.

Have done this way for years...

So to the OP...you don'have to do anything, other than make sure you are covered on your friends insurance policy (and he should have 1st Class Insurance, with the Compulsory Insurance coverage paid also--645 baht a year).

Happy driving...

You'll streamline any insurance claims by putting the persons name (renter) on the insurance.

 

Also, obviously, you don't want to mention to your insurer that your renting your car out. 

[Kwasaki]

16 minutes ago, richard_smith237 said:

Why ??  A 2 year licence is still a valid Thai Driving Licence...   

Is there any stipulation in insurance terms and conditions (of any insurance) that the insured vehicle can only be driven on a 5 year licence ????   I’ve never read or heard of such a point. 

 

 

Are you making this bumf up on the spot Kawasaki ???

 

IF the car is insured 1st Class for any driver, then its covered for any legal driver. 

 

I’ve swapped cars with friends plenty of times in the past...   A Thai Licence (any 2 or 5 year) and 1st Class (any driver) insurance is all thats needed. 

 

My 1st class insurance has requirements to stay covered in case of someone else driving it. 

 

Keep your shirt on I'm just trying to make sure op's friends car will be still insured with him driving it in case of an accident.

[richard_smith237]

14 minutes ago, Kwasaki said:

My 1st class insurance has requirements to stay covered in case of someone else driving it. 

 

Keep your shirt on I'm just trying to make sure op's friends car will be still insured with him driving it in case of an accident.

Is your 1st Class Policy for ‘named driver’ only ?

 

Most 1st Class policies in Thailand are for any driver unless the policy states otherwise (usually upon request by the policy holder for a discount on the premium).

 

Thus: IF the car is insured 1st Class for any driver, then its covered for any legal driver. 

 

All the Op needs to do is check the Policy of the vehicle itself - then he has all the answers. 

 

 

 

[Kwasaki]

2 hours ago, richard_smith237 said:

Is your 1st Class Policy for ‘named driver’ only ?

 

Most 1st Class policies in Thailand are for any driver unless the policy states otherwise (usually upon request by the policy holder for a discount on the premium).

 

Thus: IF the car is insured 1st Class for any driver, then its covered for any legal driver. 

 

All the Op needs to do is check the Policy of the vehicle itself - then he has all the answers. 

 

 

 

Reading all of an insurance policy is not what I do. ????

 

I only confirm main points. 

 

Our 1st class with Roojai is me named as main driver.

Any driver over 25 with a full DL can drive on the policy. 

 

Is a 2 year Thai DL a full DL I have not ask them that. ? 

 

Nothing in back tray is insured. 

 

No extras to original OEM are insured. 

 

The first 10,000 to be paid on a claim if my fault brings it down to just over 8000 a year which includes CTPL. 

 

I pay the full premium over 10 months over the year.