Drivers Need to Know! What Is Compensation While Fixing Your Car?

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(Photo Credit: Freepik)

Not many people are aware of this, but it's actually possible to claim compensation for the inconvenience of not having a car to use as it is being repaired after an accident. 

Understanding the concept of "loss of use" is crucial for car insurance policyholders. In the event of an accident where you are the affected party, you have the right to claim compensation for the period during which your car is being repaired.

Without prior knowledge of this compensation, you might end up shouldering additional expenses for transportation or renting a vehicle due to the unavailability of our own car.

The "loss of use" compensation is a reimbursement that can be claimed from the insurance company representing the party at fault. Its purpose is to cover transportation costs while the vehicle is undergoing repairs, excluding other financial losses.

The required documents for claiming "loss of use" compensation usually include:
  • Claim form
  • Photos of the vehicle after the accident and during the repair process
  • Repair authorization document specifying the drop-off and pick-up dates
  • Copy of vehicle registration
  • Copy of insurance policy schedule
  • Copy of ID card
  • Copy of driver's license
  • Supporting documents indicating daily vehicle usage (if available)
  • Rental car receipts or transportation expense receipts incurred during the period without a vehicle (if applicable)
  • Copy of bank account statement
  • Letter requesting "loss of use" compensation

(Photo Credit: Freepik)

Please note that specific requirements may vary depending on the insurance company, so it's advisable to consult your insurance provider for a complete list of necessary documents for the "loss of use" claim.

Here are the steps to follow when claiming "loss of use" compensation:
  • File a claim with the insurance company representing the party at fault, specifically requesting "loss of use" compensation. Remember that you can only make this claim if you are the affected party (not at fault in the accident).
  • Gather all the necessary documents, including receipts or evidence of expenses incurred during the period without a vehicle, such as public transportation fares or car rental receipts. These documents will serve as evidence to support your claim for "loss of use" compensation.
  • Submit all the required documents to the insurance company representing the party at fault.
  • Wait for the insurance company to contact you. They may engage in further negotiations after assessing the claim to determine the appropriate compensation amount.
  • Be patient while waiting to receive the "loss of use" compensation. The timeline for receiving compensation depends on the procedures of each insurance company.
The rate of compensation for "loss of use" expenses is categorised as follows:
  • Group 1: Private cars with a seating capacity of up to 7 passengers (including the driver) have a minimum compensation rate of at least 500 Baht per day.
  • Group 2: Public passenger cars with a seating capacity of up to 7 passengers have a minimum compensation rate of at least 700 Baht per day.
  • Group 3: Cars with a seating capacity exceeding 7 passengers have a minimum compensation rate of at least 1,000 Baht per day.
  • For other vehicle types, such as motorcycles, the compensation rate will be determined based on mutual agreement between the involved parties, considering the evidence and circumstances of each specific case.

However, it's important to note that the "loss of use" compensation may not be reimbursed in full at 100% because the Office of the Insurance Commission (OIC) has established standard pricing used by insurance companies to calculate the compensation amount. Therefore, receiving full "loss of use" compensation isn't guaranteed in every situation. Nevertheless, receiving some compensation is still better than none at all.

For those who are uncertain about whether car insurance is worth it, it's advisable to obtain it for peace of mind. At the very least, if your vehicle is involved in an accident and you're the affected party, you can claim "loss of use" compensation.

Are you interested in getting car insurance from Motorist? We can assist you in finding the most comprehensive policy to suit your needs!