Insuring & taxing a vehicle in Thailand

Everything you need to know about compulsory insurance, voluntary insurance, road tax, and the easiest way to get them all set up.

Insurance

You need to insure your vehicle in Thailand to drive or ride legally. Not only is it a legal requirement, road accidents in Thailand are common. The combination of modern cars, with an education system that in some ways allows you to buy your licence, or only spend 10-15 hours on the road in lessons – results in a large number of drivers who are a danger to everybody else. It’s also common for people to drive without a licence or insurance, then pay a small fine and be on their way.

To be road legal you’ll need three things:

1. A valid Thai driving licence (two separate licences and cards for each car and motorcycle). Alternatively an international driving permit (international driving licences alone are not enough).
2. Compulsory insurance, locally called “Por Ror Bor” (required to be able to purchase road tax)
3. Road tax

On top of the requirements above, “voluntary insurance” is highly recommended, especially for cars. Compulsory insurance provides benefits for injury or death, including preliminary compensation for the insured vehicle’s driver; it does not cover damage to vehicles or property. Benefits depend on the claimant’s position and the policy conditions and limits. See, for example, Roojai’s compulsory policy wording.

Voluntary insurance can cover third-party liability, injury, theft, fire, and damage to your own vehicle, depending on the policy. Check the cover limits, excess, exclusions and endorsements; the type number alone does not settle what is included.

Within the voluntary insurance category, not all coverage is created equal. Aside from choosing the broker you want to purchase with (our recommendation is below), you need to decide two other things – the “class” or “type” of insurance, and where your car will be sent if it needs to be fixed – an official garage like Toyota, Izuzu, Ford, or a local garage.

Type 1 Car Insurance:

Coverage for the insured vehicle in the event of common road incidents, including accidents with or without a third party.

Third-party liability coverage for damages or injuries caused by the insured car when the driver is at fault.

Coverage for damages to the windscreen (repair or replacement).

Coverage for non-collision incidents such as theft, fire, flooding, bail bond, personal accident, and medical expenses resulting from a car accident.

Suitable for new cars not over 5 years old, new drivers with little experience, and cars used frequently.

Main Difference from Type 2+ Car Insurance: Type 1 offers comprehensive coverage for the insured vehicle in both collision and non-collision scenarios, making it suitable for new cars and inexperienced drivers.

Type 2+ Car Insurance:

Cover for damage to the insured vehicle from qualifying collisions with another land vehicle, subject to the policy terms. For example, Roojai’s Type 2+ wording requires the other party to be clearly identified.

Liability coverage for damage and injuries to third parties caused by the insured car when the driver is at fault.

Fire and theft cover, with any flood, bail bond, personal accident and medical benefits subject to the purchased policy’s schedule and endorsements. Check what is included and the limits.

Suitable for cars used regularly, cars not over 7 years old, and cars parked in riskier areas.

Main Difference from Type 3+ Car Insurance: both can include qualifying collision cover for the insured vehicle. Type 2+ also includes theft and fire cover, subject to the policy terms.

Type 2 Car Insurance:

Coverage for liability to third parties, including property damage and bodily injury, caused by the insured vehicle when the driver is at fault.

Coverage for non-collision events such as fire, theft, bail bond, personal accidents, and medical expenses resulting from a road accident.

Main Difference from Type 3 Car Insurance: Type 2 includes theft and fire cover for the insured vehicle. See, for example, Roojai’s Type 2 wording; this is different from cover for collision damage.

Type 3+ Car Insurance:

Cover for damage to the insured car from qualifying collisions with another land vehicle, subject to the policy terms. Roojai’s Type 3+ wording covers either party’s fault but requires the other party to be clearly identified.

Third-party liability coverage for damage or injuries caused by the insured car when the driver is at fault.

Coverage for non-collision incidents like bail bond, personal accidents, and medical expenses resulting from a car accident.

Suitable for automobiles used frequently and cars that are over 7 years old.

Main Difference from Type 2 Car Insurance: Type 3+ adds qualifying collision cover for the insured car, while Type 2 includes theft and fire cover. Compare the actual policies rather than treating one as universally more extensive.

Type 3 Car Insurance:

Coverage for third-party liability, including damage or injuries caused by the insured vehicle when the driver is at fault.

Coverage for non-collision incidents like bail bond, personal accidents, and medical expenses resulting from a car accident.

Main Difference from Type 2 Car Insurance: Type 3 focuses on third-party liability; Type 2 adds theft and fire cover for the insured vehicle. Check the policy schedule and endorsements for any additional benefits.

Our recommendation

Compulsory insurance: Either use the office or purchase at the same time as voluntary insurance – any provider will be fine.

Voluntary insurance: We use Roojai (not an affiliate) for both motorcycle and car insurance. They speak very good English, they have excellent reviews, the prices have always been competitive, the process can be handled through their mobile app (Google Play or Apple App Store) and website, and you can purchase compulsory insurance at the same time.

Road tax

Every year you’ll need to renew your car tax and either display it in the window of your car, or somewhere within view on your motorcycle.

Renewing your car tax can be a little frustrating, but it’s fairly straight forward if you have the documents ready. Renewing is supposed to be possible through an app, online and in person at your local Provincial Land Transport Office – however, at time of writing the website and app do not work due to the requirement of a Thai ID card number.

1. Website: eservice.dlt.go.th
2. App on Google Play or the App Store
3. Provincial Land Transport Offices

Finding your local office is quite straight forward. There’s a tool on the official website, it’s not currently working in English but there’s a map to click on your location.

You can also search “Department of Land Transport”, “Provincial Land Transport” or “กรมการขนส่งทางบก” in Google Maps – one of those will get you there.

“Done for you” services

Tax renewals can be handled on your behalf, and there are usually ndividuals and companies offering this type of service in your local city. The service fee should be 300-500 THB. You can also ask a partner, a friend, a maid or your assistant to do it for you, just provide them with the correct paperwork:

Documents required

Vehicle registration book – This is a green book for motorcycles and a blue book for cars and trucks.
Proof of compulsory insurance – This can usually be purchased at an office at the main Provincial Land Transport Office – or online at the same time you purchase voluntary insurance.
Identification – ID card or passport of the owner.
Vehicle inspection certificate (if applicable) – For motorcycles older than 5 years, cars/trucks older than 7 years, or if you failed to renew your tax for more than 1 year.

Vehicle inspection

Cars/trucks older than 7 years, and motorcycles older than 5 years are required to be inspected prior to the purchase of road tax. If your tax has expired for more than 1 year, you will also need to have your vehicle inspected.

It’s a straightforward, affordable service. Usually there’s an inspection centre very close to the transport office, but you can search Google Maps for “ตรอ”. This logo will become familiar over time, they’re plastered on the outside of all inspection centres.

If there are any issues, you’ll need to have them fixed. It’s worth mentioning that these inspections don’t take long, and they’re not quite up to the Western standards of inspection. They will probably pull you up on modifications that are not road legal – so it would be easier to replace the modified parts with standard parts before the inspection.

What if you forget to renew your tax?

The best thing to do is set a reminder and don’t forget to renew your tax, but we’ve all done it. I previously forgot to renew my car tax for over an entire year, which is how I found out it’s better to not do that.

Keep your vehicle tax and insurance current. If you have an accident, ask your insurer how the actual policy terms apply to your claim; do not assume that tax status alone determines whether it will be paid.

If you’re caught on the road without road tax – not a big deal, you’ll pay a fine from 200-500 THB and be on your way.

If you forget but renew within 1 year, just head to your local transport office and you’ll pay such a tiny fine (1% per month) it’s not worth worrying about, it’s very common so they’ll just fix it, give you another sticker, and you’ll be on your way.

The trouble begins if you forget for more than 1 year – now you’ll need to get your vehicle inspected at an inspection centre before you can renew – still, not a big deal, not expensive and it’ll only be an issue if you have modifications which are not road legal – it’s just a bit of hassle. This inspection has to be done every year if your car is over 7 years old or motorcycle is over 5 years old anyway.

If you forget for 3 years or more, or you are purchasing a vehicle without road tax for 3 years, you will run in to much bigger problems as it will expire your car registration. Applying for a new vehicle registration is beyond the scope of this post, but just be aware.