New car insurance only covering 80% of value....is this normal?

[richy2201]

Good evening,

after receiving my insurance policy for new Toyota pickup in post today, I've managed to decipher that the "Free" Insurance I received with the pickup will only pay out ~80% of total value new in the event of it being stolen/written off....my question (as I know next to nothing about car insurance - especially in Thailand) is, Is this the average for Car policies here?

The car was bought 925k and policy covers 740k (Number 1 insurance) with policy costing 16.5k.....

Thanks in advance

[Spoonman]

Yeah that sounds bout right.

[richy2201]

Thanks Spoonman....

[khunano]

This is probably similar in other (Western) countries since the moment you drive your new shiny vehicle out of the car dealer's showroom its value has already lost some 20 %.

[SlyAnimal]

Remember that if you're buying the car on finance, that you're paying interest as well. They would only ever insure the "cash price" as a maximum.

[Falcon]

As far as I am aware, it's not similar to anywhere in Europe where the "fully comprehensive" insurance policy actually covers 100% of the value. Here in Thailand, they do only cover 80%, even from day 1. They say that as long as the car is not stolen/written off or similar within the first 2 years then it averages out - the % of cover goes down as the car ages I.e. 75% in the 3rd year, etc. the European way is, in my opinion, a much better deal but it also works out a little more expensive on a yearly basis.

[stevenl]

You can cover for 100%, but have to resort to your own policy in that case in stead of the (most of the times) 'free' policy that comes with the car.

[2unique]

Every car insurance I've had on new cars in Thailand only ever covered 80%. While incredulous at first I've learnt to accept it after getting a full coverage quote.

Also note you get more cover for damaging a building than hospitalising a person.

Sent from Android please excuse errors in type or judgement

[SamuiRes]

Seems to be standard practice. I had the same with our brand new Isuzu and I bought my own insurance through our regular broker and the insured sum is only 80% of the new value.

[oneday]

The thing that strikes me really different about Thai insurance from the US is they are far more concerned with how much they pay out for a death, than taking care of the injured. At least that's how it seems. I can't even figure out how much they would cover for hospitalization if I put someone in the hospital or I'm in the hospital.

[spermwhale]

Does not sound right. It all depends on the level of coverage they gave you.

Platinum, Gold or Silver.

Check that.

[spermwhale]

This is probably similar in other (Western) countries since the moment you drive your new shiny vehicle out of the car dealer's showroom its value has already lost some 20 %.

That drop in value does not happen in Thailand. Used cars hold their value extremely well, particularly Japanese cars. You might see a 20% reduction after three years.

[crazykopite]

Had the same with my Honda Phantom cost 70 k but only insured for 40 K I noticed then that it only insured me as the driver when I asked about insuring my passenger wife they gave me the option insure bike for 40K or passenger for 100,000 baht hospital treatment it is one or the other , you do not need a brain to decide which is better just glad i never had an accident as I had already been riding the bike for 9 months with the wife straddled on the back !!!!

[overherebc]

Rightly or wrongly I always think about it covering the outstanding payments to the finance company, so if you write the car off in the first year the finance company are covered and you're left with a smashed car and nothing else.

Customer always comes last.

[Tywais]

80% is the standard but you can request to increase that coverage for a small premium. I opted for 90% coverage.

[terryp]

you are insured only for the outstanding finance balance (EVERY YEAR you still owe money) .....free insurance is for i reason ..to protect the finance companys money in case of total loss

[tomjerry]

Friend paid 790000 for a 2013 Toyota champ pickup sold one month later for 630000. Dealers offered max 600000

Sent from my GT-I9100T using Thaivisa Connect Thailand mobile app

[tomjerry]

= about 20 percent

Sent from my GT-I9100T using Thaivisa Connect Thailand mobile app

[a10ams]

I have also heard from two different sources that some of the 'free' insurances only cover the amount still owed on the car purely to protect the finance companies interests. So if you pay a deposit of 50%, and finance the other 50% then the insurance will only cover the 50% that is being financed.

Edited August 22, 2013 by a10ams

[Peterphuket]

Hello,

For about 15 years I stay now in Thailand and owns always a car. My first new car was a Honda Civic and was covered for 100% by AIG, also my second CRV by AIG was covered for full 100%.

Until my last 2 cars, about 2 years ago I bought a Pick-up and was covered for 80%, I complained about that, but they (the insurance company) change the rules but don't change the price, you will pay for 100% but get 80%

My last car, a Fortuner, the same problem pay 100%, get 80%

They say it's because the Thai people, after 11 months they report it as stolen and get 100% covered, but in my view, as long as I pay for it, I expect to get I pay for it.

But tell me what can you do?

[stevenl]

I have also heard from two different sources that some of the 'free' insurances only cover the amount still owed on the car purely to protect the finance companies interests. So if you pay a deposit of 50%, and finance the other 50% then the insurance will only cover the 50% that is being financed.

Not true.

[stevenl]

Hello,

For about 15 years I stay now in Thailand and owns always a car. My first new car was a Honda Civic and was covered for 100% by AIG, also my second CRV by AIG was covered for full 100%.

Until my last 2 cars, about 2 years ago I bought a Pick-up and was covered for 80%, I complained about that, but they (the insurance company) change the rules but don't change the price, you will pay for 100% but get 80%

My last car, a Fortuner, the same problem pay 100%, get 80%

They say it's because the Thai people, after 11 months they report it as stolen and get 100% covered, but in my view, as long as I pay for it, I expect to get I pay for it.

But tell me what can you do?

The premium is based on the insured value, so if you insure for 80% you also pay for 80%.

[umbanda]

Somebody knows for sure what the FREE insurance in a new Honda covers? I bought a 2013 Honda Jazz for 630.000thb with 25% down...

[circusman]

I noticed that pretty much any insurance will only cover 100,000 for hospital. For you and/or the person you hurt. Seems very very low.

[givenall]

Does not sound right. It all depends on the level of coverage they gave you.

Platinum, Gold or Silver.

Check that.

mine covers replacement cost

[ignis]

Is the reason here you see cars and trucks almost new, some on Red Plates being repaired... even some what I would call very heavy damaged.

In UK if you have top Insurance a new car in the 1st year is normally replaced with another new car... Many Salvage Companies have 2012 or 2013 cars under repairable, or not Insurance write-offs... Also have different Classes some which must have a full inspection before going back on the roads + is noted in the Book so is always worth less..

Look at many Salvage Companies here you see full rear or front ends for sale, even some very new models, make you wonder how many 'Cut and Shunt' cars and trucks are driving around here.... maybe notice some that appear to 'crab' not run straight, have seen cars, Mini Buses, and lots of Pickups.......... wonder if they use such a thing as a Jig here ?

Edited August 22, 2013 by ignis

[bangkokstick]

Hi,

Do you know which insurance company is better for Benz and BMW ?

Do they get full coverage ? It seems that few luxury cars are stolen here because there is no big market around to resell stolen luxury cars, so the risk should be lower ? (Somchai rides a truck and needs parts for his truck not for his Benz).

Thanks for info.

[Tywais]

I noticed that pretty much any insurance will only cover 100,000 for hospital. For you and/or the person you hurt. Seems very very low.

Mine covers 200,000 per person plus the compulsory insurance allows an additional 50,000 per person. Also 1 Million per person, max 10 Million for loss of life. So 250,000 / person medical.

[stevenl]

I noticed that pretty much any insurance will only cover 100,000 for hospital. For you and/or the person you hurt. Seems very very low.

You have to make a distinction between the included accident insurance for passengers, yes, normally limited to 100.000 Baht, and 3rd party liability, where the insured amounts are normally much more than 100,000 Baht, on my policy 2 million e.g.

[khunano]

This is probably similar in other (Western) countries since the moment you drive your new shiny vehicle out of the car dealer's showroom its value has already lost some 20 %.

That drop in value does not happen in Thailand. Used cars hold their value extremely well, particularly Japanese cars. You might see a 20% reduction after three years.

Though you are right that values particularly of the Japanese standard cars do not depreciate as much as elsewhere, you would not be able to resell your car at 100 % on day 2.