The recent floods in Hat Yai, Southern Thailand, have turned a weekend getaway into a logistical nightmare for many Malaysians. With reports confirming that over 1,000 Malaysian-registered vehicles are trapped in submerged basements and flooded streets, a pressing question arises — are these cars insured for disasters abroad?
A Travel Tragedy: What Happened in Hat Yai?
From November 22, torrential rains triggered heavy flooding in Hat Yai, catching locals and tourists by surprise. Among those affected were Malaysian tourists, many of whom had driven across the border in their personal vehicles.
Leong Beng Tat, chair of the Sungai Petani Volunteer Firefighting Team, stated that between 1,200 to 1,500 Malaysian vehicles were caught in the floods. Many were parked in hotel basements and are now completely submerged.
To make matters worse, Malaysian tow trucks are not permitted to operate in Thailand, leaving owners dependent on Thai services just to bring their vehicles back to the border.
Insurance Woes: Are You Really Covered?
This flood has exposed a major blind spot for many Malaysian drivers: standard local car insurance policies typically do not cover incidents abroad. Unless your policy includes an international or cross-border extension, you’re likely not protected for:
- Natural disasters like floods or landslides overseas
- Theft or vandalism abroad
- Towing or vehicle repatriation costs from a foreign country
For many of the stranded vehicle owners in Hat Yai, this meant paying out of pocket for recovery — and in some cases, abandoning their vehicles altogether due to repair costs exceeding vehicle value.
What Can Malaysian Car Owners Learn from This?
If you’re planning to drive into Thailand — especially to places like Hat Yai, a common travel destination — here’s what you should seriously consider before your next trip:
1. Check Your Insurance Policy Coverage
Most basic Malaysian car insurance policies do not automatically extend coverage overseas. You must opt-in or purchase a cross-border coverage extension, which often includes:
- Third-party liability in Thailand
- Own damage & theft abroad
- Coverage for natural disasters like floods
2. Add Special Perils Coverage
Even within Malaysia, not all policies cover floods. Make sure your car insurance includes Special Perils Add-On, especially during the monsoon season or if you drive through flood-prone areas — locally or abroad.
3. Understand the Claims Process
Even if you’re covered abroad, the claims process may differ. You’ll need to provide detailed documentation from Thai authorities, including police reports, towing documentation, and repair estimates.
4. Emergency Support Is Crucial
Does your insurer offer 24/7 emergency assistance? In cross-border cases, having a responsive insurer with international coordination is critical. Choose insurers with multilingual support and established partnerships in Thailand.
Volunteer Efforts Save the Day
Amid the chaos, 23 Malaysian rescue teams went above and beyond to assist trapped tourists. While many victims expressed gratitude, the situation also showed how ill-prepared many travelers are for disasters abroad — not just physically, but financially.
Final Thoughts: A Wake-Up Call for Travelers
The Hat Yai flood is a stark reminder of the risks we often overlook when driving across borders. A short trip can quickly become a financial and emotional burden if you’re underinsured or unaware of policy limitations.
At Fincrew, we strongly recommend reviewing your motor insurance policy before any overseas drive. Speak to your insurer about cross-border add-ons, or compare flexible plans through Fincrew that include Special Perils and Thailand coverage options.
