Renting a Car From a Private Owner in Phuket: What Do You Risk?

The main difference is the insurance and who is responsible when something goes wrong. A rental company insures the car for rental use, gives you a written contract and has someone to call after a breakdown or accident. With a private owner everything rests on an agreement with one person, and the lower price is the cost of those missing guarantees.

In peak season MonkeyCar takes some cars from partners, and some of them carry a first class policy. The rental terms on such a car are the same: if you are at fault, no more than the excess is taken from the deposit, and with full insurance MonkeyCar pays for the repair.

Every car in Thailand has compulsory CMI insurance (Por Ror Bor), and on top of that the owner buys a voluntary policy. There are several types, and two are the most common: first class insurance for private, personal use and commercial (business) insurance for commercial use of the vehicle. Renting a car out falls under the second.

First class cover is broad: it protects against damage to others and also covers the car itself. That is why "my car has first class insurance" sounds convincing. The class tells you what is covered, though, and the type of use tells you who drives and why. A personal-use policy is meant for the owner and their family and does not cover renting the car to a tourist for money.

For the past few years the police have been strict about this. If a tourist is driving and the car has no commercial insurance, there can be trouble. The officer looks at your licence and the car documents and may ask whose car it is and on what basis you are driving it.

If it turns out a personal car has been rented out, the police can impound it, and your trip by car ends there. The rental money is already with the owner, and whether you get anything back for the remaining days is entirely up to them. Meanwhile you are the one dealing with the police, in a foreign language.

• The police check whether a car with a tourist at the wheel has commercial insurance
• Without it the car can be impounded, leaving you without wheels for the rest of the trip
• A refund for unused days depends only on the owner's goodwill

After a crash, a police officer and an insurance agent come to the scene. The agent establishes who was driving and on what terms. If the policy is for private use and a tourist rented the car, the insurer may refuse to pay, and all the damage can be put on you.

You and the owner signed the contract; neither the insurer nor the police are party to it. A deposit does not cap the amount either: it is money the owner holds, and the bill can be larger. The Thai police also mostly side with locals, and the owner and the other driver are often Thai. If there is an accident, see the step-by-step guide on what to do after an accident in a rental car.

• A police officer and an insurance agent come to the scene
• A signed contract and a deposit do not limit what you can be asked to pay
• Do not sign documents in Thai without a translation

The steps are the same as for any accident in a rental car; they are set out in what to do after an accident in a rental car. With a private owner's car add two things: tell the owner straight away, and do not agree on money on the spot before the police and the insurance agent arrive. If you settle in cash on the spot, the insurer may refuse to pay.

• Switch on the hazard lights and check that everyone is fine; if anyone is hurt, call an ambulance on 1669
• Call the police (191) or the tourist police (1155)
• Photograph the scene, the cars, the damage and the number plates before anything is moved
• Call the car owner and send them the photos
• Wait for the police and the insurance agent: leaving the scene of an accident is a criminal offence in Thailand
• Take a copy of the report and the contacts of the other party and their insurer

Sometimes people suggest a simple way out: if you are stopped or have an accident, say a friend lent you the car. The risk stays. You are still a tourist driving someone else's personal car, someone still has to pay for the damage after a crash, and the police and the insurer establish the facts themselves without taking your word for it.

If it turns out the "friend" took money for the car, the lie only makes your position worse. So it is better not to take a car with first class insurance for private use, even if the owner seems reliable and the price is convenient.

If you still take a car from a private owner, ask the questions below in a chat before you meet and request a photo of the policy. A good answer is specific and backed by a document, while "everything is insured" with no details tells you nothing. The same questions work for a rental company too.

At the meeting, photograph the car from every side along with the registration book and the policy, do not leave your passport as security and do not transfer the full amount up front. Other common traps are covered in the article on rental pitfalls.

• Who the insurer is and when the policy expires
• Which policy it is: first class for private use or commercial insurance for business use
• Whether there is a written rental contract, and in what language
• What the excess is and what happens to the deposit after an accident that is your fault
• Who is responsible if the police stop the car or there is an accident, including at night

Policies on MonkeyCar's own fleet are taken out for rental, that is, for commercial use. This is the commercial insurance the police expect on a car with a tourist at the wheel. A private owner's policy is usually for personal use and does not cover rental.

MonkeyCar is a rental company in Phuket. Cars are handed over under a written rental contract in Russian and English. Basic insurance is included in the rental price, and for damage to the car itself that is your fault you pay no more than the ฿5,000 excess, as long as the contract rules are followed. What breaks them (for example, drink-driving or leaving the scene of an accident) is listed in the rental terms.

Full Insurance costs 35% of the rental, at least ฿3,000, and is available on rentals from 7 days. It removes the excess, and no deposit is needed with it. With basic insurance the deposit is refundable; its size depends on the model and shows in the calculator before you book. How the excess works and when full insurance pays off is explained in the article on rental car excess.

If there is an accident, MonkeyCar support is available around the clock: they will help you call the police and arrange an interpreter. The step-by-step procedure is in the article what to do after an accident in a rental car. Pick a car for your dates in the MonkeyCar fleet: the calculator shows the total with season and insurance before you send a request.

• Book with no prepayment, pay on pickup
• Free cancellation up to 24 hours before pickup
• No passport held as a deposit
• Insurance is valid in Phuket, Phang Nga and Krabi provinces