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

[Colabamumbai]

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 %.

You are correct, I was just going to make the posting.

[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?

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

I do not agree with you, sorry, my experience is different.

[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%.

I do not agree with you, sorry, my experience is different.

The premium is based on the insured value, but you may think differently.

[Peterphuket]

Listen I got my sixth car here in Thailand,all newly purchased without funding. With the last 2 cars it was not possible to conclude with 100% coverage an insurance. Also the broker convinced me it is normal for 80% now on this days.

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%.

I do not agree with you, sorry, my experience is different.

The premium is based on the insured value, but you may think differently.

[ableguy]

Just been through this, bought a new pick up two door with the dicky seat and two half doors that open outwards, king cab. ( Izusu High Rider ) had a few things added to it bringing cost upto close to 800. they would only insure it for 680, reason given farmers use these trucks and tend to beat them up so the insurance industry have a price cap on them. They will not accept extra payment to cover the extra cover so you are stuck with it, I paid cash for my truck and was told cash or HP the rules and costs are the same. By the way if you put a carryboy on your new truck be sure to inform DMV as it must be entered in the blue book, if not the BIB will nail you fpr a few fines. good luck,

[Regyai]

80% is standard fare for Thai insurance

But other anomalies to what you may be used to with vehicular insurance 'back home'

Such as

Its the vehicle thats insured not the driver (in that unlike the West where the proposer - and often any other drivers - have to be named on the policy. here in LOS any legitimate driver is covered)

Have a smattering of small claims and no swingeing price loading follows you around at renewal time

.

[oneday]

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.

Not low for a government hospital, but very low for a private hospital.

Edited August 23, 2013 by oneday

[stevenl]

Listen I got my sixth car here in Thailand,all newly purchased without funding. With the last 2 cars it was not possible to conclude with 100% coverage an insurance. Also the broker convinced me it is normal for 80% now on this days.

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

I do not agree with you, sorry, my experience is different.

The premium is based on the insured value, but you may think differently.

Fine, but you're still not paying for 100%. But if you want to believe you're being ripped off, even though you're not, up to you.

[KittenKong]

I did quite a lot of research into this recently when setting up my second year of cover after the first "free" year. No one offered 100% cover at any (sensible) price but I did find that the "book" value for the vehicle did vary from company to company, with up to about 10% difference.

In the end my current 2nd year cover gives a somewhat higher insured value for the vehicle than I got on the first year's cover from the dealer, though both are premium or first class or whatever you want to call it. This higher cover is still only about 83% of the replacement price though.

I suspect that this limit on value is entirely down to fraud prevention on the part of the insurance companies.

[Regyai]

I suspect that this limit on value is entirely down to fraud prevention on the part of the insurance companies.

Theres no suspicion to it

Thats exactly it

Could you just imagine if a total loss got back 100% of the value with no fiscal pain to the insured, the burning hulks at the side of the road would be like bush landing lights

.

[impulse]

Free insurance provided by the finance company protects them first, and trickles down to protect you.

You probably owe a lot less than 100%, so it's all good for them. For you, probably not so much.

[impulse]

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.

I just paid peanuts for a 3rd class insurance policy covering 1 million baht per injured party up to 10 million per accident.

Car is too old to worry about collision or theft, but I wanted a buttload of liability coverage. I figure the insurance company will get me a great lawyer before paying out those sums....

Edit: Just checked and limit for me and my passengers is 100K. Oops. Not a concern for me since I have employer provided medical. The 1 Mil/10Mil is for 3rd parties.

Edited August 23, 2013 by impulse

[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.

I just paid peanuts for a 3rd class insurance policy covering 1 million baht per injured party up to 10 million per accident.

Car is too old to worry about collision or theft, but I wanted a buttload of liability coverage. I figure the insurance company will get me a great lawyer before paying out those sums....

Edit: Just checked and limit for me and my passengers is 100K. Oops. Not a concern for me since I have employer provided medical. The 1 Mil/10Mil is for 3rd parties.

Yes, that is what I said earlier as well. Circusman's post is at minimum confusing.

[Jerry Cornelius]

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%.

I do not agree with you, sorry, my experience is different.

The premium is based on the insured value, but you may think differently.

You're right but the extra payment to get the additional 20% cover isn't 20% of the cost of an 80% (value of the vehicle) policy. It's closer to 50%.

Jerry

[KittenKong]

Theres no suspicion to it

I cant prove it so it remains a suspicion.

[KittenKong]

Free insurance provided by the finance company protects them first, and trickles down to protect you.

Apart from the difference in the car book value my free insurance (provided by the manufacturer, not any finance company) was almost identical to the paid 2nd year I got myself. And when looking for the paid 2nd year I found companies who also used a lower book value for the car, similar to that of the "free" first year cover, or less.

So I dont think there would have been any difference in the insurance I got for "free" if I had paid for it myself.

Of course I also dont think that my car manufacturer paid the same amount for the cover that I would have paid as an individual. They must be getting some quantity discount.

[impulse]

Free insurance provided by the finance company protects them first, and trickles down to protect you.

Apart from the difference in the car book value my free insurance (provided by the manufacturer, not any finance company) was almost identical to the paid 2nd year I got myself. And when looking for the paid 2nd year I found companies who also used a lower book value for the car, similar to that of the "free" first year cover, or less.

So I dont think there would have been any difference in the insurance I got for "free" if I had paid for it myself.

Of course I also dont think that my car manufacturer paid the same amount for the cover that I would have paid as an individual. They must be getting some quantity discount.

You caught me out. With my tongue firmly in cheek.

I salute you for researching your second year options. My (poorly made) point was that it's a good idea to look after your own interests rather than trust your car manufacturer and finance company to take care of it for you. They may do right by you, but you can be sure they're doing right by themselves.

[Regyai]

I think its pretty obvious that there's no CSI investigation needed to unveil the fact that 'Free' Insurance given by the dealer is going to have the bells and whistles pared down from it. The dealer will want it as cheap as possible while retaining its perceived value. Obviously if you want to cast your net about the market place you will find cover with better benefits, but suffice it to say the self same cover will cost you more than the car dealership pays for it (in fact if you cozy up with the dealer you can - if he deigns fit - route the renewal via them so that you benefit from their volume discounts)

.

[KittenKong]

I think its pretty obvious that there's no CSI investigation needed to unveil the fact that 'Free' Insurance given by the dealer is going to have the bells and whistles pared down from it. The dealer will want it as cheap as possible while retaining its perceived value.

You seem to have missed my point entirely. In my research there was no significant difference between my "free" first year of dealer insurance and my paid-for second year from another company, apart from the difference in book value which, as I mentioned, was also to be found with several other companies for the paid second year.

The dealer (or more likely the manufacturer) surely gets a significant discount on the premium but in my case at least the cover did not suffer as a result.

I accepted the free insurance rather than trying to negotiate a supplementary discount on the car as I was sure that the cost of insurance if I bought it elsewhere would be much higher than the price the dealer paid for their cover, which would be the maximum I could possibly hope to get as a discount for not taking their insurance.

[KittenKong]

My (poorly made) point was that it's a good idea to look after your own interests rather than trust your car manufacturer and finance company to take care of it for you. They may do right by you, but you can be sure they're doing right by themselves.

Absolutely.

[Spoonman]

My (poorly made) point was that it's a good idea to look after your own interests rather than trust your car manufacturer and finance company to take care of it for you. They may do right by you, but you can be sure they're doing right by themselves.

My finance company is massively concerned that my pickup no longer has any insurance or road tax paid.

I sent em a picture of my engine on the ground in a big pile of pieces.

I do not think they understood.

[boris1948]

hi its normal for the percentage to be around 70% for years it was over the last 20yrs or so I have had over 15 new cars and the company I started with also does my home insurance well when on my second car they quoted 70% if the car was a right off etc I said no way if it needs replacing then no money comes out of my pocket so here is what we came up with 70% on one policy and a second 30% on a second policy the company was ok with this so thats been my status ever since my last toyota vios insurance was under 20,000 class 1 and no question in the policy it quotes both policy numbers as combined insurance for the same car

if in doubt ask QBE for a quote worth it thats for sure.please mention you want class 1 with a combined second top up policy to a full 100% value of the car on the road

[canopus1969]

My (poorly made) point was that it's a good idea to look after your own interests rather than trust your car manufacturer and finance company to take care of it for you. They may do right by you, but you can be sure they're doing right by themselves.

My finance company is massively concerned that my pickup no longer has any insurance or road tax paid.

I sent em a picture of my engine on the ground in a big pile of pieces.

I do not think they understood.

Nor do I - what's wrong with the engine ?

[Spoonman]

My (poorly made) point was that it's a good idea to look after your own interests rather than trust your car manufacturer and finance company to take care of it for you. They may do right by you, but you can be sure they're doing right by themselves.

My finance company is massively concerned that my pickup no longer has any insurance or road tax paid.

I sent em a picture of my engine on the ground in a big pile of pieces.

I do not think they understood.

Nor do I - what's wrong with the engine ?

Water got into it and bent some conrods, Ford pulled it to pieces and said no warranty..........Insurance company said it is in pieces so no insurance.

Road tax and insurance were due last month and paying them were not high on my to do list given the vehicle is not in any state to be driven.

[KittenKong]

Anyone who is concerned about the 80% cover problem might like to look at the Tesco Insurance Broker website. Their online quote facility seems to allow you to enter your own figure for the vehicle value.

I have not tested this so I dont know if there is some sort of limit that appears later in the process.

[khunjerrybkk]

No. Is NOT normal in Thailand.

I just purchased a NEW Toyota Pick-up and the FREE 1st year vehicle insurance policy insured 90% of the purchase price.

If they think they can get away with reducing the policy limits they will do to this.

You should be telling the SELLER and the Insurance Broker/Company WHAT LIMITS/COVERAGE you "must" have on the vehicle.

Negotiate my friend !

[bangkokstick]

So, finally, 80% is the rule ? Even for luxury cars ?