Why insurance matters in Thailand
Car hire insurance is the part of a rental that confuses people most – and the part that causes the most arguments at the desk. Phuket's steep hills, heavy rain, tight parking and busy scooter traffic mean small scrapes are common, so it pays to know exactly what you are covered for before you drive away.
This guide explains the cover included in most prices, the excess and deposit, the things that are usually excluded, and how to choose between extra cover at the desk and full protection when you book.
The cover in your price
- Compulsory third-party insurance (called "Por Ror Bor" in Thailand) – required by law for every car. It covers medical costs for people injured in an accident, up to fixed limits.
- Third-party liability – many suppliers add extra cover for damage to other people's property; the limit is shown in the conditions.
- Collision Damage Waiver (CDW) – limits what you pay for damage to the rental car.
- Theft Protection (TP) – limits what you pay if the car is stolen.
Prices in our search normally include all of these. The rental conditions of each offer show the exact cover and limits.
What is the excess?
Even with CDW and TP, you are liable for the first part of any claim – the excess (sometimes called the deductible). If the excess is, for example, THB 10,000 and the repair costs THB 25,000, you pay THB 10,000 and the insurance pays the rest. If the repair costs THB 4,000, you pay THB 4,000.
The excess varies by supplier and car group – premium cars, vans and convertibles usually have higher excesses. It is always shown in the conditions before you book.
How the deposit works
The supplier blocks a security deposit on your credit card at pick-up, and it usually matches the excess. It is a hold, not a charge. If the car comes back undamaged and with the right fuel level, the hold is released; your bank can take several working days to show it. If there is damage, the supplier deducts the cost (up to the excess) and releases the rest.
Choosing zero-excess cover at the desk often lowers the deposit as well.
Usually not covered
- Tyres, windscreen and glass, the underside of the car, mirrors and lost keys – unless you buy extra cover
- Damage while driving under the influence of alcohol or drugs
- Damage off sealed roads, on beaches or in floods you drove into
- Taking the car on a ferry or across a border without written permission
- Damage caused by a driver not named on the contract
- Personal belongings stolen from the car
- Fines, towing and clamping charges
A worked example
Imagine you scrape a bumper in a car park and the repair costs THB 8,000. Your excess is THB 15,000.
- Standard cover only: you pay THB 8,000, deducted from your deposit.
- Zero-excess cover from the desk: you pay nothing for the repair; you paid the daily cover fee instead.
- Full protection bought when you booked: the supplier deducts THB 8,000 from your deposit, and you claim it back with the damage report and receipts.
The figures are only an example – the real excess and repair costs depend on the supplier and the car.
Desk cover or booking cover?
There are two common ways to reduce the excess:
| Supplier cover at the desk | Full protection when you book | |
|---|---|---|
| How it works | Excess reduced to zero or a small amount | You pay the supplier after damage, then claim the money back |
| Deposit | Often lower | Normal deposit is blocked |
| Price | Paid per day at the desk | Paid when you book, usually cheaper per day |
| Best for | Simplicity, lower card hold | Lower cost, if you can cover the deposit |
Both work – the key is to decide before you arrive at the desk, so you are not upsold in a hurry after a long flight.
Your own travel insurance and credit card
Some travel insurance policies and premium credit cards include rental excess cover. Check the small print carefully: many exclude certain countries, vans or luxury cars, rentals over a certain length, or require you to pay for the rental with that card. Travel insurance also covers your own injuries and belongings, which the rental insurance does not – make sure your policy covers driving abroad.
Avoid deposit disputes
- Film a slow walk-round video at pick-up, including the wheels, windscreen, roof and interior.
- Make sure every existing mark is written on the damage sheet – however small.
- Photograph the fuel gauge and mileage.
- Return the car in daylight if you can, and photograph it again in the return area.
- Keep fuel receipts, the signed return sheet and your contract until the deposit is released.
If the car is damaged
- Make sure everyone is safe and move out of traffic if you can.
- Call the rental company before anything else – the number is on your contract.
- Photograph the damage, the other vehicle, its number plate and the scene.
- For anything more than a scratch, wait for the insurance surveyor or police report: without it, the claim may be refused.
- Get a copy of the report and keep all receipts.
Common mistakes to avoid
- Letting an unnamed friend drive – the insurance is void for unnamed drivers.
- Not noting small scratches at pick-up because "they are tiny".
- Driving onto a beach or a rough track to reach a viewpoint.
- Leaving the car with luggage visible – theft of belongings is not covered.
- Taking the car onto a ferry "just for a day".
- Signing an accident statement you do not understand.
Questions to ask at the desk
- What is the excess for this car, and how much is the deposit?
- Are tyres, glass and the underside covered?
- What exactly does the extra cover add, and how much is it per day?
- How long does the deposit take to be released?
- What is the number for roadside assistance?
