Professional Documents
Culture Documents
Car Insurance in The Philippines: A Guide For New Owners - Moneymax
Car Insurance in The Philippines: A Guide For New Owners - Moneymax
Moneymax
Owning a car entails many responsibilities. Before you can even drive it, you need to accomplish
basic requirements such as vehicle registration and car insurance coverage. While registering your
car is a more straightforward task, getting a car insurance in the Philippines can get more complex.
It requires you to do some research on car insurance, determine the coverage your vehicle needs,
and choose an insurance company that offers the best deals. But don’t let the process discourage
your from insuring your car. Learn everything about car insurance in the Philippines through this
beginner-friendly guide.
Compulsory Third Party Liability insurance is the most basic and least expensive car insurance in
the Philippines. It is a government-mandated insurance policy that covers both private and public
vehicles. Every vehicle owner in the country is required to buy this policy. You need to secure a
CTPL insurance first before registering your vehicle with the Land Transportation Office (LTO).
Read More: How Much Does Car Insurance Cost in the Philippines?
Step 1: Choose a non-life insurance provider and buy your policy from them.
Step 2: Upon purchase, you will receive a policy with conditions together with a Confirmation of
Cover or COC. Don’t forget to make copies of every document you will receive.
Step 3: Bring these documents to the LTO upon registration to prove that your vehicle has a third
party insurance coverage.
While a CTPL insurance protects the general public, a comprehensive car insurance protects you,
your car, as well as your passengers from an extended list of road-related risks and hazards.
Meanwhile, a comprehensive car insurance provides financial protection to you and your car by
covering car repairs and insuring you against damage, liabilities caused by collision, car theft,
floods, and landslides, among many road mishaps.
In essence, buying a comprehensive car insurance in the Philippines gives you a sense of security
that no matter what happens on the road, your investment will not go to waste. Without a
comprehensive car insurance, you’re basically just gambling with fate.
In the event of an accident, you will shoulder all damages associated to your vehicle. You will pay
for repairs, replacements, medical bills, legal services, and other fees that you’ll end up spending
way more than what you would’ve saved from not buying a comprehensive policy.
How Much Does a Comprehensive Car Insurance Cost?
Unlike CTPL insurance, there are no fixed rates when it comes to comprehensive car insurance in
the Philippines. Every comprehensive policy coverage differs by price as they depend on the current
state of your vehicle. Factors that may affect your policy rate are:
Model – the fancier the vehicle, the more expensive the policy
Make – luxury and foreign makes are more expensive to insure
Year – older cars are cheaper to insure
Usage – how worn out is the car?
Accessories – the number of accessories can also increase the rate
Safety Features – the safer the car is, the cheaper it is to insure
Fair Market Value – how expensive is your car?
Depreciation – how new/old is your car?
Fair market value refers to the estimated price of your car according to its model and series. It is a
fairly accurate estimation of how much the insurance company will cover in case of vehicle damage
or loss. Insurers also consider your car’s depreciation when determining the price of your
insurance.
In theory, you’ll get a cheaper insurance policy if you’re insuring an older car. Most insurers apply a
straight-line 10% annual depreciation to the value of cars. And of course, the overall price may vary
on the types of car insurance coverage included.
Legal Assistance. If you are involved in a legal case caused by a vehicular accident, this
coverage can aid you financially by paying for hearings and legal consultations. Legal
assistance allows you to settle legal issues in a more cost-effective way.
Roadside Assistance. Consider adding this coverage to your policy if you wish to receive
immediate assistance when your car breaks down on the road. Roadside assistance covers
various vehicle services including towing services, roadside repairs, and fuel deliveries.
Loss of Use. If you can’t use your car due to damage, this will reimburse any transportation
expenses incurred during your vehicle’s repair period. Some insurance companies also offer
temporary transport services in events like this.
Riots, Strikes, and Civil Commotion. This coverage covers damages from kicking,
scratches, broken mirrors, shattered windows and windshield, and other forms of vehicle
damage caused by riots.
Read More: 8 Car Insurance Add-ons Every Car Owner Needs to Consider
It’s basically the same process when applying for a CTPL insurance. Submit the documents to your
chosen insurer, pay the premiums, and wait for your insurance policy. You will receive a digital copy
through email as well as a hard copy which will arrive at the address you provided. Always keep in
touch with your provider for further questions regarding your insurance.
Know your policy schedule. Take note of the term and expiry date of your policy to avoid
additional costs from your insurance company.
Don’t skip the fine print. Before signing, read the documents provided to you. It’s
important to know about the inclusions and exclusions as well as the clauses and terms that
will help you during claims and renewal.
Consider your budget. When looking for a comprehensive car insurance, think about your
vehicle, your lifestyle, and your budget. While more coverage means more security, it also
means more expenses. Be smart and only get the policy you need.
Compare providers. Don’t settle with a single insurance company when other companies
can provide you a better and cheaper deal. Read more about the top car insurance
companies in the Philippines and let Moneymax help you compare.
Moneymax can take you through the entire process of getting a car insurance. From choosing the
right insurance to filing your insurance claim, Moneymax will assist you in every step of the way. And
the best part? Our services are free! Get started by getting a free quote below.
Produced by wallabag with tcpdf
Please open an issue if you have trouble with the display of this E-Book on your device.