Someone hits your car from behind, through no fault of yours, and it is in the garage for two weeks. During that time, who pays for taxis, a hire car, or the income lost because you have no vehicle? There is a right called loss of use compensation, and a great many people who are hit never realise they can claim it. Here is the full picture.
What loss of use compensation is
It is compensation for the inconvenience of having no vehicle while your car is being repaired after an accident for which the other party was at fault. The legal principle is straightforward: the damage from an accident is not only the dented bodywork, but also the use of the vehicle lost during the repair. The party who caused it — through their insurer — must therefore make that good.
Who can claim, and from whom
There is one main condition: you must be the party not at fault. You then claim against the insurer of the party who was at fault, not your own insurer. A common misunderstanding: this right has nothing to do with what class of cover your own car has, or whether it has any at all. As long as you were not at fault and the car needed repair because of that incident, you have a legal right to claim.
How much: there is a defined minimum
The Office of Insurance Commission (OIC) sets minimum daily compensation rates by vehicle type — private cars, pick-ups and vans each at a different rate [check the latest information]. It is counted by the number of days the repair reasonably took. If your actual loss is higher than the minimum — for example if you use the vehicle for work and have evidence of lost income or actual hire costs — you can negotiate for the real loss. The final figure usually comes down to negotiation on the evidence you hold.
The claim process, step by step
- Gather evidence from the day of the accident — the police daily record or documentation confirming the other party was at fault.
- Keep the repair paperwork — the intake document, the list of repairs, and documentation of the date the car was returned, to establish how many days you were without it.
- Collect evidence of your loss (if claiming above the minimum) — receipts for travel, car hire, or proof that you use the vehicle for work.
- Write a formal claim letter to the other party's insurer, stating the number of days and the amount, with the evidence attached.
- Follow it up. If the insurer refuses or negotiates unusually low, you can complain through the OIC hotline on 1186.
Tips for a smooth claim
Submit the claim at the same time as the repair claim — do not wait until the car is finished and then remember. Make a habit of keeping every travel receipt while you are without the vehicle. And negotiate with documents rather than emotion: the insurer already has a framework for paying under the criteria, and the completeness of your evidence determines how much of your entitlement you receive.
In short
Being hit costs you more than the car — it costs you the use of it, and that part is recoverable by law from the at-fault party's insurer. Remember three things: be the party not at fault, keep evidence of the repair days, and write a formal claim. This right belongs to everyone, whatever class of cover their own car has. If this has just happened to you and you are unsure of the steps, message us on LINE.
This article was inspired by material from the Thai Financial Planners Association (TFPA) and has been entirely rewritten.