Important! What you should know before you renew your insurance (2/5) : Deductibles


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 a deductible?

If you are unlucky and get into an accident, the deductible or excess is the amount you pay out of pocket before the insurance company steps in to pay a single Baht of your claim.

To give you an example:

  1. Driver A purchases an insurance policy and opts for a deductible of 2,000 Baht

  2. Driver A gets into a minor accident, the cost of repairs is 5,000 Baht

  3. When it comes time to pay for the repairs, Driver A pays the first 2,000 Baht upfront and the remaining 3,000 Baht gets paid for by the insurance company

Why is this important?

Insurers like deductibles because it helps them reduce the time and effort required to process small claims. Because of this, an agreement was made by the Thai General Insurance Association that allowed customers that opt for a deductible of up to 5,000 Baht (for select products) to also enjoy a discount on their insurance premiums for the equivalent amount (eg. a deductible of 3,000 Baht will reduce also reduce the premiums they pay by 3,000 Baht).

For good drivers that don’t expect to claim, this sounds like a great deal because it allows you to enjoy a direct savings of up to 5,000 Baht. However, what the insurer doesn’t tell you is that that they may break major accidents into multiple claims (depending upon negotiation) – as a result, you also end up paying the deductible multiple times. In these instances, a savings of 5,000 Baht upfront could end up costing you tens of thousands if you’re not careful. It’s no wonder that most people don’t like deductibles.

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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