Use this simplified guide to help you in choosing the best car insurance provider that can fulfill your financial needs.
Car insurance, simply put, is a type of protection that covers you from
financial losses when your vehicle incurs damages or when it causes damages
to another vehicle or property, typically during accidents and other
situations that are beyond your control.
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| Photo by Tim Samuel from Pexels |
A Simplified Guide In Choosing The Best Car Insurance In The Philippines
Car insurance in the Philippines
Car insurance in the Philippines, like in many parts of the world, is mandated
by law before an individual is allowed to drive a vehicle on the road.
Nevertheless, practical and responsible car owners should get protection from
vehicle repair expenses, medical and hospitalization costs, and even
expenditures resulting from damage to other vehicles.
There are many top car insurance providers to choose from in the Philippines,
each with its own unique package and level of affordability. Ultimately,
choosing your own automotive insurance provider will all boil down to the comprehensiveness of your policy needs.
Some of the primary reasons why you should get car insurance are the
following:
- You don’t want to be bothered by the costs of repairs to your damaged vehicle. At times you want to be given preferential treatment during the duration that your vehicle is being repaired, which could be in the form of a service vehicle that will be lent to you or shortened repair time. Additionally, it's advisable to request estimates to have a clearer understanding of potential expenses. Most auto repair shops have auto repair estimates software which can give you a quick and accurate estimate.
- You’d rather not concern yourself when writing-off your car.
- You want peace of mind knowing that you will get medical assistance, including ambulance and roadside assistance, for you and your companions or loved ones in case of vehicular accidents.
- You’d rather have somebody else take care of legal matters and paperwork in situations when there are cases involved.
- You want protection for your vehicle in case of deliberate damages, vandalism, theft, violent rallies, fire, or any other non-natural occurrences that may cause damage to your car.
- You want to protect your vehicle from natural calamities (Acts of Nature or Acts of God) such as typhoons, flooding, earthquakes, volcanic eruptions, and other similar events.
In the automotive insurance parlance, there are three entities involved within
the insurance policy:
- The First-Party – this is the person buying the insurance policy for their vehicle
- The Second-Party – the insurance provider from which the policy is bought
- The Third-Party – a person (or a company) initiating the claim against the first-party because it figured in an accident caused by the first-party
Types of vehicle insurance
There are two main types of car insurance in the Philippines. One is the
Comprehensive Third-Party Liability (CTPL) and the other one is Comprehensive
Car Insurance.
Let’s take a further look at these two insurance types:
A. Comprehensive Third-Party Liability (CTPL)
This is the type of insurance that is mandated by the Land Transportation
Office when registering your new vehicle or even when renewing your car registration. It’s the most basic type of motor vehicle insurance and the most affordable.
However, keep in mind that CTPL does not provide insurance to the vehicle-owner (First-Party), and his companions during an accident. As its name
suggests, CTPL only covers the third party involved in the accident and will
shoulder costs related to damage to property, physical injuries, permanent
disablement, and even death.
Again, even if you purchase CTPL, it will still leave you and your companions
vulnerable to financial risks due to damages to your vehicle and the
likelihood of not getting immediate medical attention in case of
accidents.
The cost of CTPL varies per vehicle and between insurance companies. Private
vehicles typically range from P550 to P650 while trucks and passenger buses
range from P1200 to P1300 for one-year coverage.
For exact costs, you may request a quote from your insurance provider.
B. Comprehensive Car Insurance
Comprehensive Car Insurance (also called “compre”) packs more features as compared to CTPL. It’s the most recommended type of car insurance because it provides wider coverage, including protection from the financial impact caused by accidents, thefts, and deliberate damages to your vehicle.
It comes in two options: With Acts of Nature (Acts of God) and
Without Acts of Nature. The only difference between the two is that
Comprehensive Car Insurance with Acts of Nature provides additional coverage for natural calamities such as typhoons, lightning, flooding, earthquakes, and other similar disasters. As such, this type of motor vehicle provides the utmost peace of mind to the policy-holder.
Depending on the cost of your vehicle, the model, and add-ons, the cost of
comprehensive car insurance ranges from P15,000 to P60,000 per year.
How to choose the best car insurance provider to cover your needs
With the many car insurance companies in the Philippines, it can be a bit overwhelming to decide on which policy to get. Again, CTPL is mandatory but you’d want a policy plan that is more comprehensive than that because it will ultimately save you money, time, and stress.
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| Photo by Kaboompics .com from Pexels |
There are good auto insurance options in the Philipines, such as Malayan Insurance's Automaster, that offer an insurance policy package with wide coverage.
Here is a summary of the features that you might want to look for in a car insurance provider to ensure for
headache-free driving:
1. Vehicular loss or damage
You would want a car insurance provider that will cover you for car damage or help you recover your lost car due to theft. More than that, you want a company that can do it for you fast so that you’d be back driving your car in no time.
2. Accident coverage
Protect yourself as well as your companions from expenses incurred from vehicular accidents. Accident coverage should also include ambulance, medical,
and hospitalization expenses.
3. Acts of Nature
Natural disasters are beyond your control and these events wouldn't spare the properties that you worked hard for. However, you can protect your vehicle from damages caused by calamities through a good car insurance provider.
4. Third-Party Liability
No matter how prudent we are on the road, accidents do happen in which we unintentionally hurt another individual or damage their property. Save yourself from further headaches by getting yourself covered from these types of incidents.
5. Damage from violence resulting from public demonstrations
Public demonstrations can become violent especially if there are dispersals involved. Some participants can be unruly and cause damage to cars and other properties. Again, you can save yourself from stress if you get a car insurance provider that can cover damages from these types of events.
6. Accessories protection
We all like to upgrade or buy accessories for our vehicles such as mags,
stereo components, or GPS. However, these are also hot items in the eyes of unscrupulous individuals who may be tempted to steal these things because of their resell value. You can include protection for these investments when you choose your car insurance provider.
7. Protection for valuable accessories
If you have other valuable accessories that you need insurance protection, a good car insurance provider can help you cover these.
8. Loss of use
Get a reimbursable transportation allowance for each day that your car is
being repaired.
9. Additional perks
It’s always good to get additional perks with your car insurance package. You
can get one with an extensive network of accredited repair shops so that you
can easily find a supplier to fix your vehicle.
You can also look for a car insurance provider who can help you with towing
services, roadside assistance, or who can give you immediate information such
as road and weather conditions and traffic situations.
Epilogue
Choosing a car insurance provider in the Philippines is not complicated at all. At the very least, you can get a CTPL but it will only cover your expenses for damages you have caused on another vehicle or property.
If you want car insurance that will give you maximum financial protection,
including medical and hospitalization, get a comprehensive car insurance package. You can further customize it with add-ons that are suitable for your insurance coverage needs.
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Upon reading it,I certainly agree with you. After all ,we thought it was kinda hard but it was not really a complicated one ,whom everybody expect ,thanks for giving us this "Simplified Guide " helpful and important
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ReplyDeleteThank you for sharing this tips in getting car insurance to avoid financial losses when your vehicle incurs damages or when it causes damages to another cars.
ReplyDeleteThis is very informative blog.
We can get some tips for our owned cars.
Thankyou for sharing this po. Worth it to read po. Talagang napaka halagang malaman po ito, specially sa mga nag hahanap ng Car insurance. Very helpful po itong tips nyo. Very informative blog. π
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ReplyDelete