Updated 28 October 2026. This is general information, not legal advice. Policy wording varies between insurers, so read your schedule and ask your broker to confirm in writing.
Insurance is where a rental business either survives a bad accident or doesn't. In Thailand there are two layers: compulsory insurance that every vehicle must have, and voluntary insurance that protects your vehicle and covers third parties properly. For a rental business, the second layer only works if the insurer knows the vehicle is rented.
Compulsory insurance (พ.ร.บ.)
Every car and motorbike must carry compulsory motor insurance under the Road Accident Victims Protection Act 1992 (พ.ร.บ.คุ้มครองผู้ประสบภัยจากรถ พ.ศ. 2535). You need it to renew the annual tax.
What it covers, per person, according to the Office of Insurance Commission (OIC) order of 2025 and Chubb's summary:
| Benefit | Limit |
|---|---|
| Initial payment, paid without waiting for fault: medical costs | Up to ฿30,000 |
| Initial payment: death or permanent disability | ฿35,000 |
| After fault is established: medical costs | Up to ฿80,000 |
| Death or total permanent disability | ฿500,000 |
| Loss of organs or permanent disability | ฿200,000 to ฿500,000 |
| Hospital inpatient allowance | ฿200 a day, up to 20 days |
| Maximum per accident | ฿20 million (all vehicle types) |
The per-accident limit rose from ฿5 million (10 million for vehicles over seven seats) to ฿20 million under OIC order 51/2568, with no premium increase, applying to existing and new policies from 1 January 2026 (Thansettakij). The OIC schedule also states that where the injured person is the driver of the insured vehicle, only the initial payment applies.
What it does not cover: damage to your vehicle, damage to other vehicles or property, theft, or legal costs. That's why พ.ร.บ. alone is not enough for a rental fleet.
Premiums are set by vehicle type and use. As a guide, the published rates for motorbikes are ฿323.14 a year for a private 75–125cc bike and ฿376.64 for the same bike used for hire or rent. Buy the rate that matches how the vehicle is used.
Voluntary insurance classes
Voluntary insurance (ประกันภัยภาคสมัครใจ) comes in classes. Here's what each usually covers, based on KTC's comparison:
| Cover | ชั้น 1 | ชั้น 2+ | ชั้น 3+ | ชั้น 2 | ชั้น 3 |
|---|---|---|---|---|---|
| Third-party injury and property | Yes | Yes | Yes | Yes | Yes |
| Your vehicle: collision with an identified land vehicle | Yes | Yes | Yes | No | No |
| Your vehicle: single-vehicle accident, no other party | Yes | No | No | No | No |
| Theft | Yes | Yes | No | Yes | No |
| Fire | Yes | Yes | No | Yes | No |
| Flood | Yes | Add-on | No | No | No |
For rental cars, ชั้น 1 is the usual choice because renters have single-vehicle accidents: hitting a wall, a ditch or a kerb. Under ชั้น 2+ or 3+ those are not covered, because there is no identified other vehicle. Since 1 January 2026, the minimum third-party death and permanent disability limit on new voluntary car policies is ฿20 million per accident at existing premium rates (Daily News).
Green-plate rental cars have an extra requirement. The DLT's rules on registering service cars require insurance beyond พ.ร.บ., and the standard rental contract asks you to write in that policy's insurer and number. See which registration you need.
Declare rental use, or expect claim problems
This is the most common and most expensive mistake. Insurance bought for a private car does not quietly stretch to cover a rental business.
- Non-disclosure. Section 865 of the Civil and Commercial Code makes an insurance contract voidable if the insured knew of a fact that would have led the insurer to charge more or refuse, and did not disclose it (text of section 865). Renting the car out is that kind of fact.
- Use outside the schedule. Standard Thai policy wording adds an excess when the car is used outside the use stated in the schedule. Where the insurer pays a third party it wasn't liable to pay you for, it can recover that money from you, typically within seven days of a written demand (example policy wording).
- Investigations. After a crash, the assessor will ask who was driving and why. A foreign driver with a rental contract on a car insured for private use is easy to spot.
What to do:
- Tell your insurer or broker, in writing, that each vehicle is rented out, and to whom (tourists, long-stay renters, foreigners).
- Make sure the policy schedule shows the correct use.
- Keep the email or letter. If there's a dispute, it shows you disclosed.
- Expect a higher premium. Build it into your prices; it's a cost of doing business.
Named drivers vs any driver
The voluntary car insurance rules changed recently. Under the OIC's new tariff, personal-use car policies must name their drivers, for new and red-plate cars from 2025 and for all cars from 1 January 2026 (OIC announcement). Insurers explain that vehicles used other than personally are insured on an unnamed-driver basis, and a personal-use policy can name up to five drivers (Chubb).
For a rental business this matters in two ways:
- A personal-use, named-driver policy does not fit a car driven by a different renter every week. If an unnamed driver crashes, Chubb's summary lists a compulsory excess of at least ฿2,000 for third-party property damage and ฿6,000 for damage to the insured car.
- A policy written for rental or commercial use, on an any-driver basis, is what you want. Ask the insurer which drivers are acceptable: minimum age, licence held for how long, foreign licences and international driving permits.
Then match your contract to the policy. If the insurer covers drivers aged 21 and over with a valid licence for that class, your agreement should say the same, and only the renters you record may drive.
Excess (ค่าเสียหายส่วนแรก) and passing it to renters fairly
Two kinds of excess can apply to a claim:
- Voluntary deductible (Deductible). An amount you choose in exchange for a lower premium, shown on the schedule.
- Compulsory excess (Excess) under policy conditions, such as when the other party can't be identified or the driver isn't covered by name. Amounts depend on the policy, so read the schedule.
Most operators pass some or all of this to the renter when the renter causes damage. That's reasonable, but the 2025 rental contract rules set limits. Under the official forms you must inspect the vehicle at return, raise any damage then, and claim only the actual damage with evidence. You cannot keep or deduct from the deposit if the renter hasn't breached the contract.
A fair approach:
- State the renter's maximum liability in the contract, for example "up to the policy excess of ฿5,000 per incident when the renter is at fault", and apply it consistently.
- Charge actual cost, backed by a garage quote or invoice and photos.
- Offer a reduced-excess option, if you like, for a daily fee, and write down exactly what it covers.
- Exclude cover in clear cases: drink-driving, unlicensed drivers, ride-hailing or delivery use. The standard form already makes the renter liable for all damage caused while driving under the influence of alcohol or drugs.
Motorbikes: the gap most operators leave open
Most rental scooters in Thailand carry only พ.ร.บ. That leaves three risks uncovered: damage to the bike, damage the renter causes to others, and theft.
Options:
- Voluntary motorbike insurance. Insurers sell class 1, 2+ and 3+ style motorbike policies. Some include theft and fire. Check that rental use is accepted, as many personal motorbike policies exclude it, and ask for the excess on theft.
- Third-party only. Cheaper than full cover, and it protects you from the large claims when a renter hits a car or injures someone.
- Self-insure theft. Many small operators keep a theft reserve rather than insure: for example, setting aside ฿100 to ฿200 a month per bike. Combine it with GPS trackers, a disc lock in the seat and clear rules on overnight parking.
- Theft clause in the contract. The renter returns the keys and police report, or pays a stated amount if the bike is stolen through their negligence, such as leaving the keys in it.
The DLT has said it plans a permit system for motorbike rentals. If it arrives, minimum insurance could be part of it.
What to do after an accident with a renter
Give every renter a short card or message with these steps, and follow your own:
- Safety first. Injured people get help; call 1669 for medical emergencies and 191 for police. Tourist Police are on 1155.
- Don't move the vehicles until photos are taken, unless they block traffic dangerously.
- Call the insurer's claims line, printed on the policy, and wait for the assessor. Most Thai insurers send someone to the scene.
- Photos and video: all vehicles, plates, damage, road, signs, the other party's licence and insurance.
- Don't sign anything admitting fault without the assessor; the renter should call you first.
- Police report if anyone is injured, the other party disputes fault, or the vehicle is stolen.
- Replacement vehicle. Under the standard contract forms, you must provide a similar vehicle if the rented one is off the road for more than one day because of an accident, unless the renter caused it by breaking the law.
- Settle the deposit properly. Record the damage at return, get a quote, deduct actual cost only, and return the rest within the contract's timings.
RoveHQ stores timestamped handover photos with each booking, so you can show the vehicle's condition before the renter took it. Use the handover checklist at both ends.
Writing insurance into the rental agreement
Your agreement should leave no doubt about what's covered. The official forms require you to list your compulsory insurer and policy number, and the voluntary policy if required. Beyond that, include:
- Policy summary: insurer, class, policy number, expiry date and the excess.
- Who may drive: the named renter and any additional drivers you approve, matching the policy's age and licence rules.
- Renter's liability: the maximum they pay per incident when at fault, and the exclusions where they pay everything.
- What's not covered: personal belongings, tyres and windscreens (if your policy excludes them), and off-road use.
- Accident procedure: call you and the insurer, no private settlements without your agreement.
- Theft procedure for motorbikes, including returning the keys.
- Fines: renter pays fines incurred during the rental, at actual cost.
- Your obligations: keep tax and insurance valid for the whole rental, and provide a replacement vehicle where required.
Our free bilingual rental agreement includes these clauses alongside the official form's required terms. If you also rent long term, read how to run a monthly car and scooter rental business for renewals that fall inside a rental.
Quick checklist
- Every vehicle has a valid พ.ร.บ. bought at the right use rate
- Voluntary insurance shows rental use, in writing
- Policy is any-driver, or your contract limits drivers to those covered
- Excess and renter liability are written in the agreement
- Motorbike theft risk is insured or reserved for
- Renters have the accident steps and your number
- Renewal dates are tracked for every vehicle
Get the paperwork right before the next claim, not after. Download the free bilingual rental agreement, or sign up for RoveHQ to keep insurance details, expiry reminders and handover photos with every booking.
Questions
Is พ.ร.บ. enough for a rental car or scooter?
It is the legal minimum, not enough protection. พ.ร.บ. only covers injury and death, up to ฿80,000 medical and ฿500,000 death per person. It pays nothing for damage to your vehicle or anyone's property.
Do I have to tell my insurer the vehicle is rented out?
Yes. Rental use is a material fact. Under section 865 of the Civil and Commercial Code, an insurance contract is voidable if the insured fails to disclose facts that would have changed the insurer's decision. Standard policies also add an excess when a vehicle is used outside the use stated in the schedule.
Can I charge renters the insurance excess?
You can agree in the contract that the renter pays up to the excess when they cause damage, but under the 2025 rental contract rules you can only claim actual, evidenced damage and cannot keep a deposit if the renter has not breached the contract.
Can I insure rental scooters against theft?
Some insurers sell voluntary motorbike policies that include theft, usually class 1 or 2+ style cover. Ask specifically whether rental use is accepted, as many personal motorbike policies exclude it.