Owning a car brings freedom and convenience, but it also comes with the responsibility of proper financial protection. Car insurance safeguards you from unforeseen accidents and their financial repercussions. However, with various insurance options available, choosing the right coverage can be a challenge. Understanding the details of each policy, particularly the coverage limits, is crucial for making informed decisions.

When it comes to car insurance premiums, cost is naturally a significant factor. However, focusing solely on affordability can lead to inadequate coverage. By familiarizing yourself with these details, you can strike the right balance between affordability and sufficient protection for your car.

Understanding Motor Type 1 Insurance

Motor Type 1 insurance, also known as Own Damage insurance in some regions, primarily focuses on covering damage to the policyholder’s own vehicle. This coverage applies in various situations, including:

  • Collisions with other vehicles or objects
  • Damage caused by natural disasters (e.g., hail, flooding)
  • Fire or theft
  • Vandalism or attempted theft

Essentially, if your car is damaged due to an insured event, Motor Type 1 insurance may help cover the repair costs or, in extreme cases, compensate you for the vehicle’s value. However, it’s important to remember that Motor Type 1 insurance typically does not cover damage caused to other vehicles or property involved in an accident.

Key Coverage Limits in Motor Type 1 Insurance

Understanding the coverage limits within your Motor Type 1 policy is vital. These limits dictate the maximum amount the insurance company will pay for repairs or vehicle replacement in the event of a covered claim. Here’s a breakdown of the key coverage areas and their limitations:

Third-Party Liability Coverage Limits

Even though Motor Type 1 insurance focuses on your own vehicle, most policies include a component for third-party liability coverage. This is crucial because it provides financial protection if you are found at fault for an accident that damages another person’s property or causes bodily injury. There are typically two main aspects to consider within third-party liability coverage:

  • Bodily Injury Liability: This covers medical expenses and lost wages incurred by individuals injured in an accident you caused.  It’s essential to pay attention to two separate limits within this coverage:
  • Per Person Limit: This represents the maximum amount the insurance company will pay for injuries sustained by a single person in the accident. 
  • Per Accident Limit: This is the total amount the insurance company will cover for bodily injury to all individuals involved in the accident, regardless of the number of people injured.
  • Property Damage Liability: This covers repairs or replacement costs for property belonging to a third party that is damaged in an accident you cause.  This could include damage to another vehicle, a building, or any other property.

Own Damage Coverage Limits (if applicable)

While the primary focus of Motor Type 1 insurance is own damage, some policies may offer additional coverage for repairs or replacement of your vehicle in the event of a covered claim. If your policy includes own damage coverage, it’s important to understand the associated limits. These limits typically fall into two categories:

  • Repair Cost Coverage Limit: This represents the maximum amount the insurance company will pay to repair your vehicle after a covered event.  This limit may be a fixed amount or a percentage of the vehicle’s insured value.
  • Vehicle Replacement Coverage Limit: In cases where repairs are deemed uneconomical due to extensive damage, the insurance company may opt to replace your vehicle.  The coverage limit in this scenario would be the maximum amount they will pay towards the purchase of a new or used vehicle of similar value.

It’s important to note that coverage limits can vary significantly between insurance companies and policy options. Some factors that may influence the offered coverage limits include:

  • Engine size or vehicle value: Generally, higher-value vehicles or those with larger engines may come with higher coverage limits.
  • Driver’s age and experience: Younger drivers or those with less experience may be offered lower coverage limits initially.
  • Add-on coverage options: Some policies allow you to purchase additional coverage for specific events or to increase existing coverage limits for an additional premium.


Understanding the limitations of your Motor Type 1 insurance policy is crucial for making informed decisions. By carefully reviewing the coverage limits, particularly for third-party liability and own damage (if applicable), you can ensure your car is adequately protected while managing your insurance costs effectively.

It’s always a wise move to consult with a qualified insurance agent who can explain the different Motor Type 1 policy options available and help you choose one that aligns with your specific needs and risk tolerance. Don’t hesitate to compare coverage limits and ask questions to ensure you get the right level of protection for your vehicle. By being proactive and understanding your insurance coverage, you can drive with peace of mind, knowing you

Travel With Confidence With A Car Insurance 

Visit Allianz Thailand at www.allianz.co.th/th_TH/ to explore their comprehensive car insurance solutions. Their experienced advisors can help you understand different policy options, including Motor Type 1 coverage, and guide you towards choosing the right plan that balances affordability with the protection you need for your car. Don’t wait – secure your peace of mind on the road today!