• Motor insurance is a type of insurance familiar to and widely recognized by many people because it is considered a must have by all car owners in order to insure themselves against road accidents that could happen at any time.
  
  
• Although motor insurance cannot prevent road accidents, it could help ease financial burdens from the damage incurred. Most importantly, you will feel assured that whenever there is an accident, you will get help for your accident as well as compensation for various kinds of damage.
  
  

Motor insurance can be divided into the following 2 main types:

• 1. Compulsory Motor Insurance: This is an insurance which all cars are required to have according to the Road Accident Victim Protection Act B.E. 2535 (A.D.1992). This type of insurance provides coverage for losses of life lives, bodies, or health of the motor accident victims only. For example, if you drive your car into a pedestrian who is walking across the street such that the person gets injuries; this compulsory motor insurance will cover only medical expenses of that pedestrian and within a limit of Baht 80,000/person. However, in reality, each accident could cause far more damage than your expectation.
  
  
• 2. Voluntary Motor Insurance: This type of insurance covers damage that exceeds the liability covered by compulsory motor insurance. Voluntary motor insurance can be divided into the following categories:
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• Motor Insurance Class 1
  
• This type of motor insurance provides full coverage for any accident including any loss of/damage to life, bodily injury, and/or property and medical expenses of both the insured and the counterparty.
  
  
• Motor Insurance Class 2
  
• This type of motor insurance provides coverage for any loss or damage to the vehicle of the insured as a result of fire as well as any damage to life, bodily injury, medical expenses and property of the counterparty only.
  
  
• Motor Insurance Class 3
  
• This type of motor insurance provides coverage for any damage to life, bodily injury / medical expenses and prpoerty of the counterparty only.
  
  
• Motor Insurance Class 4
  
• This type of motor insurance provides coverage for any damage to property of the counterparty only.
  
  
• Motor Insurance Class 5
  
• This type of motor insurance provides coverage for any accident including any damage to life, bodily injury / medical expenses and property of both the insured and the counterparty. This appears to be similar to Motor Insurance Class 1. However, unlike Motor Insurance Class 1, Motor Insurance Class 5 provides coverage for any damage to the property of the insured as a result of collision with other land vehicle only. For example, if you drive a car into a tree, Car Insurance Class 5 will not cover any damage to your car because the tree is not a land vehicle.
  
  
• At present, there are several new forms of motor insurance emerging in the market. Coverage and conditions vary according to each class of insurance. Motor insurance policies other than those specified as Class 1, 2, 3 and 4 above will be considered as Class 5. However, most people often refer to Motor Insurance Class 5 as “Motor Insurance Class 2+” or “Motor Insurance Class 3+” or other marketing names. This could cause confusion among many people. Therefore, we should carefully review the details of coverage and conditions specified in each insurance policy to protect our own interests.
  
  

• Choosing which type of motor insurance to buy may be based on driving behaviors, vehicle purpose of use, vehicle age and condition, budget, and other details as follows:
  
  

• Definition	Details
  Sum insured	A maximum limit of indemnity which an insurer pays according to types of coverage mentioned above. For example, compensation for damage to the insured vehicle as a result of collision shall not exceed Baht 600,000 per accident; or compensation for damage to life, bodily injury, health, and property of third parties shall not exceed Baht 5,000,000 per accident.
  Premium	A payment to be paid to the insurer in exchange for the received protection. It is to be paid on a yearly basis. Premium rates vary depending upon each type of insurance, coverage, and sum insured of the insured vehicle.
  Identification of driver	If a driver is specified, the premium rate could be reduced. In the case of an accident in which the driver is not the same person as that specified in the policy, the policy still provides coverage; however, the insured has to pay a deductible amount.
  Excess or Deductible	A amount which the insured is obliged to pay by oneself at each time of damage incurred. This is a condition specified in the policy schedule. The excess or deductible amount varies according to specified conditions. For example, the insured has to pay the deductible amount of Baht 2,000 for collision without a counterparty or Baht 6,000 in the case where the driver at the accident is not the same as the person specified in the policy schedule (in the case of the policy with specified the identified driver).
  No-claim bonus discount	Discount rates vary according to the past record of that particular insured car in terms of any claim for damage compensation and how much. Normally, discount rates are at20%-50%.
  Insurer	To choose an insurer, the following factors may be taken into consideration:           ?  Stability and financial position of the insurer           ?  Reputation of the company           ?  Service mindedness of employees           ?  Simple or difficult claim process           ?  Repair garage network           ?  Others You can obtain the information above from various media channels including friends and associates in order to ensure that the chosen insurer is well-established and credible, and can be trusted when you file claims for indemnification and services.