What Vehicle Owners Need to Know: Why Is Compulsory Motor Insurance Required?

For owners and users of cars or motorcycles, arranging compulsory motor insurance and renewing annual vehicle tax are important legal obligations. Overlooking them may result in legal consequences and additional expense. The following overview explains the key points.

What is compulsory motor insurance?

Compulsory motor insurance is required under Thailand's Protection for Motor Vehicle Accident Victims Act. A vehicle's owner or possessor must arrange the cover, which is intended to provide statutory protection for people injured or killed in road accidents, subject to the applicable law and policy terms.

📌 A vehicle must have valid compulsory motor insurance before its annual vehicle tax can be renewed.

Who must arrange the cover?

• the vehicle owner; or
• the person possessing the vehicle.

The obligation applies to registered cars and motorcycles.

What can happen if a vehicle is not insured?

If a vehicle does not have compulsory motor insurance:

• the owner or possessor may have to meet relevant compensation costs arising from an accident;
• the responsible person may be liable to a statutory fine; and
• the annual vehicle tax cannot be renewed.

What can happen if annual vehicle tax is not renewed?

Failure to renew vehicle tax may result in the following consequences.

Tax outstanding for less than three years

• The Department of Land Transport may decline to process certain registration matters.
• The outstanding tax and applicable surcharge must be paid in full before the matter can be completed.

Tax outstanding for three years

• The vehicle registration will be suspended.
• A new registration application will be required.
• Three years of outstanding tax and the applicable statutory charges must be paid.

Using a vehicle that does not comply with the law

• This includes using a vehicle with suspended registration or failing to display the vehicle-tax disc.
• The person possessing the vehicle may be liable to a statutory fine.

Valid insurance is required before vehicle tax can be renewed

Annual vehicle-tax renewal requires compulsory motor insurance that has not expired. Check the expiry dates of both the insurance and vehicle tax each year to avoid future legal and administrative problems.

Where can you purchase compulsory motor insurance and renew vehicle tax?

For convenience, customers can purchase compulsory motor insurance and renew vehicle tax at Muangthai Capital branches. At the time the source article was published, the Company stated that more than 8,600 branches nationwide were available. Find a nearby branch.