Important! What you should know before you renew your insurance (1/5) : Sum Insured


Renewing your 1st class car insurance soon?

When you see prices that are too good to be true, be careful! A few baht saved up front could result in a major cost to you if an accident should happen. The purpose of this series will be to share with you what to look out for to ensure you get the most out of the car insurance that you buy from Carpool or from any broker/insurer.

What is sum insured?

If you are unlucky and get into an accident, the insurance company will pay you the lesser of:

  1. The actual cost to repair/replace your car

  2. Or, a maximum called the sum insured amount

To give you an example:

  1. Driver A purchase an insurance policy from insurance company ABC with a sum insured of 300,000 Baht

  2. Driver A gets into a major accident and is at fault

  3. At the garage, the car is repaired and Driver A is billed for 500,000 Baht

  4. As the sum insured of the policy is only 300,000 Baht, the insurer pays that amount and the remaining 200,000 has to be paid for by Driver A!

Why is this important?

For most good drivers, we buy insurance for peace of mind: although we may have a few scratches here and there, the real reason we buy car insurance is to protect us against major financial costs if there is a serious accident.

For most insurance companies, the sum insured is the market value of your car based on brand, model/sub-model and year; and as such, is a pretty good indicator of how much your insurance policy should cover. The premiums charged by the insurance company are also charged roughly in proportion to the sum insured amount (i.e. the lower the sum insured, the lower the premiums you pay on your car insurance).

Knowing this, some brokers/insurers ignore the market value and will propose a lower sum insured amount. They do this so that the policy they propose to you appears cheaper than those proposed by others. Although you may think their intentions are good by helping you save money upfront, beware! You don’t want to end up like Driver A.

Carpool helps good drivers save money without compromising on coverage

At Carpool, we believe that good drivers should enjoy peace of mind that you get from comprehensive coverage and still save money too. With our innovative peer-to-peer car insurance offering, good drivers can enjoy up to 30% cash back each year off of already competitive 1st class car insurance premiums. To learn more, please visit us at www.carpool.co.th

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