Insurance Of New Car

[banK]

Bought a new Chevy truck 3 weeks ago for 849000 baht for cash.

Garage as normal paid the first year insurance for the car. Name of the insurance company THANACHART. I now have the insurance docs and noticed that if the car is a write off for whatever reason the sum they pay will be 680000 baht. Is this normal for insurace in Thailand i.e. you get less back than what you paid for the car in the first year.

Also, there is no "rule booklet" with the policy. The previous car I had was insured by Bangkok insurance - They provided a booklet every year on renewal of insurance.

As an aside, the salesman asked what insurance company would I like - I told him a company (can't remember the name now, which was recommended by a friend) but it certainly wasn't Thanachart - a question of kickbacks I presume.

banK

[anon210]

Well, that insurance is a 80 % coverage of the new car value. And yes, it is quite usual for those compulsory 1st-class insurance "given" for "free" to limit themselves to 80 % of the value of the car. Mine (Tokyo Marine) has the same 80 % limitation.

In Europe, most of the times, you may choose the value of indemnification (catalogue value, second hand value, etc...). Here, you select apparently the value of replacement (the best you can find is 90 % replacement I guess).

[banK]

Ah well - live and learn

[banK]

Well, that insurance is a 80 % coverage of the new car value. And yes, it is quite usual for those compulsory 1st-class insurance "given" for "free" to limit themselves to 80 % of the value of the car. Mine (Tokyo Marine) has the same 80 % limitation.

In Europe, most of the times, you may choose the value of indemnification (catalogue value, second hand value, etc...). Here, you select apparently the value of replacement (the best you can find is 90 % replacement I guess).

Just a thought - what would the replacement value be if I had bought on credit - i.e. protection for the lender

[IMHO]

Just a thought - what would the replacement value be if I had bought on credit - i.e. protection for the lender

80% - that's the standard. In most cases, the minimum downpayment required is usually 20-25%, thus they are covered.

If insurance paid 100% value, there would very likely be a steep rise in car fires/theft, and a sharp reduction in defaulted loans...

[stevenl]

Well, that insurance is a 80 % coverage of the new car value. And yes, it is quite usual for those compulsory 1st-class insurance "given" for "free" to limit themselves to 80 % of the value of the car. Mine (Tokyo Marine) has the same 80 % limitation.

In Europe, most of the times, you may choose the value of indemnification (catalogue value, second hand value, etc...). Here, you select apparently the value of replacement (the best you can find is 90 % replacement I guess).

Just a thought - what would the replacement value be if I had bought on credit - i.e. protection for the lender

Same, 80%.

[anon210]

Talking about this... When they had the 0% program over 4 years for the sale of the last Escapes at Ford, they told me that I could pay any amount of down payment I wanted, up to 10 % or none at all. I guess their insurance covered at 90 % the value of the car then.

[MJCM]

Talking about this... When they had the 0% program over 4 years for the sale of the last Escapes at Ford, they told me that I could pay any amount of down payment I wanted, up to 10 % or none at all. I guess their insurance covered at 90 % the value of the car then.

I think you are mixing up down payment and insurance.

Payment of a car always has to be made 100% in full, but even when you have paid for the car in full, and you get into car wreck which totals your car while driving out of the dealer, the insurance will pay you only 80% max of the value of the car.

The down payment of 10% means that there is still 90% of the car unpaid for, so if you would get into a wreck the insurance will only pay 80% of the value, and it will be your responsibility to come up with the rest of the money to pay for the car in full.

Edited February 11, 2013 by MJCM

[Tywais]

As mentioned, normal is 80%. I optioned to increase it to 90% for a small increase in premium.

[anon210]

Talking about this... When they had the 0% program over 4 years for the sale of the last Escapes at Ford, they told me that I could pay any amount of down payment I wanted, up to 10 % or none at all. I guess their insurance covered at 90 % the value of the car then.

I think you are mixing up down payment and insurance.

Payment of a car always has to be made 100% in full, but even when you have paid for the car in full, and you get into car wreck which totals your car while driving out of the dealer, the insurance will pay you only 80% max of the value of the car.

The down payment of 10% means that there is still 90% of the car unpaid for, so if you would get into a wreck the insurance will only pay 80% of the value, and it will be your responsibility to come up with the rest of the money to pay for the car in full.

No, I was relating my comment to the issue of coverage for the lender (mentioned above), and was wondering whether in the Ford case, it left a part of the price uncovered by insurance for the company. Excluding of course the fact that the owner of the car would always be liable for the amounts not covered by insurance.