Must-have car insurance policies for Philippine drivers

You have recently purchased a new car, and your friends and family are already planning trips and long drives. But wait, before you nod your head to their proposal, the order of business is to get your car insured. Yes, car insurance is crucial for a motor vehicle (be it a motorcycle or a car), as it offers financial security in the event of an accident or any unfortunate event involving your vehicle.

Let’s be practical, guys. No matter how well you or your driver drives, no one is ever 100% accident-free on the road. It’s just that with insurance by your side, the repairs caused by the accident will be taken care of by the insurance company.

Surly auto insurance is a savior; however, the key is choosing the right coverage. Now, there are several types of car insurance policies available to a Filipino driver; however, a few stand out and are a must-have for all car owners.

Note: It's important to remember that car insurance coverage in the Philippines can differ based on the auto insurance provider and the policy options selected by the insured. We recommend thoroughly reviewing your policy and consulting with your insurance agent to make certain you have the necessary coverage.

Let’s now check out some must-have auto insurance policies -

Compulsory Third Party Liability Insurance (CTPL)

As the name suggests, CTLP is mandatory by LTO for a car owner to procure. Once your car is registered, the next step is to get a CTLP with a coverage of PHP 100,000. It ensures that any third party that is outside the car is taken care of in the event of an accident by your car. Also, as per section 373(c), a third party is any person other than the car owner's relative. So, it will include something other than your friends and family.

Also Read: Compulsory Third Party Liability (CTPL) 101: Everything a car buyer needs know

Auto Liability Insurance

What if your car is involved in an accident and it damages someone’s property or vehicle, and now the owner of that particular asset is after your life to pay for the damages? What will you do? Who will come to your rescue? It is here that Auto Liability Insurance proves its worth. It saves you from the overwhelming cost of paying for the damages. So, our suggestion would be to top your CLTP with Auto Liability Insurance, just to be on the safe side. As the most unfortunate thing can happen to the safest driver.

Comprehensive Car Insurance

It's time to look ahead of the third-party liabilities (person and property) and focus a little on the car owner’s injuries, car damage, etc. So, comes comprehensive car insurance that thinks about the car owner’s benefit. This one offers protection to the car owner against accidental damages and loss caused by collision and overturning, theft and burglary, fire and lighting, self-ignition, and malicious acts by a third party.

All the above-mentioned events might seem unlikely to happen but it is a fact that they do which in turn leads to a lot of expense. Therefore, with comprehensive car insurance in hand (on top of the CTPL and Auto Liability Insurance), the car owner ensures that his/her vehicle is protected as well.

Also Read: Why comprehensive insurance is vital for car owners in the Philippines

Passenger Personal Accident Insurance

Do you drive for a living? If yes, you have to have Passenger Personal Accident Insurance. Why? Well, that’s because here you are, the passenger as well, along with all the individuals that are being transported by the public vehicle you are driving. None of these are covered under Compulsory Third-Party Liability Insurance. So, if you are a good driver or business owner who cares about the passengers, the Passenger Personal Accident Insurance is the one you should opt for.

The good news is that the Land Transportation Franchising and Regulatory Board (LTFRB) has made Passenger Personal Accident Insurance mandatory for all land public transport operators even before they commence the business. In case of a mishap, each passenger gets a PHP 150,000 cover.

Acts of Natural Coverage

Natural disasters like floods, earthquakes, typhoons, and other calamities are not covered by comprehensive car insurance. So, what should a car owner do to protect his/her car against losses caused by such forces of nature? Simply, they should opt for an insurance policy with an Act of Nature coverage. Also, do keep in mind that our country is part of both the Pacific Ring of Fire and the Storm Belt, therefore making such auto insurance very necessary.

Car Insurance add-ons

Once you have penned down the insurance policy for your vehicle, it is time to further enhance the coverage. Though it is not mandatory, there is no harm in getting some additional financial security for your vehicle in these uncertain times. But be wise in selecting the add-ons as each offers a very specific coverage and comes with a price tag. Some of the auto insurance add-ons are -

• Roadside assistance
• Zero depreciation
• Engine
• Loss of use cover
• Key replacement
• Accessories
• Personal belongings

Wanna know more about car insurance add-ons in the Philippines, check out this link here.

Also Read: Your guide to car insurance payment options in the Philippines

Top car insurance providers in the Philippines

Now that you are aware of some of the must-have car insurance policies and add-ons, it is time to head to the providers. Finding a good insurance company is a different struggle in itself, so we have curated a list of top insurance providers you can check out. The list includes -

• FPG Insurance
• OONA Insurance
• FGen Insurance
• Bethel Gen Insurance
• Mercantile Insurance

Wanna know more about the plans and coverage they offer? Check out here.

How much does a car insurance policy cost?

One of the key reasons why many car owners shy away from car insurance policies (apart from CTPL as it is mandatory) is its price. On average, a car owner needs to shell out at least PHP 10,000 annually, depending on the vehicle make and type. For instance, car insurance costs for an SUV can reach as high as PHP 30,000, depending on the coverage. But there are ways to reduce the car insurance price; here’s how -

• Always compare different providers
• Check the factors that are affecting the insurance rate (vehicle type, participation fee, age, location)
• Increase your deductible
• Check discounts and special offers
• Go for a more affordable car
• Be a responsible driver

Bottom line

No matter how good a driver you are, accidents can happen, and when they do, they cause a lot of damage. In such an event, if there is no auto insurance in hand, it calls for a lot of trouble. Just imagine the financial toll it will take on the car owner. Therefore, always be on the safe side, be alert, prepared, and, yes, insured as well.

Also Read: 10 Factors that determine your car insurance premium