Why you need automatic car insurance coverage in the Philippines

Automatic cars have transformed the very landscape of the Philippine automobile industry. They have changed the way Filipinos feel about driving - from the ease of learning to drive to the convenience, comfort, and modern tech they offer. Indeed, the love for the stick has not faded and people still prefer manual cars over automatic, as they like to be in control at all times.

However, it is essential to address the new technology and the appropriate cautions that must be tagged along. In the case of automatic cars having appropriate insurance coverage is crucial. Why? Firstly to ensure financial protection and secondly one has to comply with the law.

In this article, we’ll be learning all about automatic cars, why their insurance is important in the Philippines, and much more. So, without any delay let’s get started.

Automatic cars A unique buying experience

Buying an automatic car is a unique buying decision for a customer, all thanks to its advanced technology and innovative features that add to its ease of use. These cars are equipped with a self-shifting transmission system, meaning drivers do not need to manually change gears. This feature makes driving simpler, particularly in congested traffic, hilly terrains, or for individuals with mobility issues.

Advanced technology

Automatic cars operate using a self-shifting transmission system, which eliminates the need for manual gear changing. This makes them particularly appealing in urban areas with heavy traffic, allowing drivers to focus on navigation rather than constant gear shifts.

Innovative features

Automatic vehicles often come equipped with features like adaptive cruise control, automated braking, advanced infotainment systems, and more. These features not only enhance comfort but also improve safety, making automatic cars a preferred choice for many drivers.

Automatic vs. Manual cars

There is an obvious difference between automatic and manual cars, but it is good to have a brief, right?

Automatic cars are equipped with a self-shifting transmission system, meaning there is no need to change gears manually. This attribute makes driving simpler, particularly in heavy traffic, hilly terrains, and for individuals with mobility issues.

Manual cars, on the other hand, require the driver to operate a clutch and shift gears manually, which can be cumbersome in stop-and-go traffic. They are generally less expensive upfront and may offer better fuel efficiency.

The table below gives a detailed comparison -

Feature	Automatic Cars	Manual Cars
Ease of driving	Ideal for traffic-heavy areas and long drives	Requires more effort in stop-and-go-traffic
Cost	Generally higher upfront and maintenance cost	Lower purchase price and repair cost
Fuel efficiency	May consume slightly more fuel (older models)	Often more fuel-efficient
Learning curve	Easy to learn and use	Skill required for clutch and gear use
Insurance	More expensive and require add-on coverages to cater to advanced technology	Considered less risky due to the lack of complex electronics, therefore comparatively less costly

Note, the added convenience of automatic cars comes at the cost of higher repair and insurance costs. Thus emphasizing the need for comprehensive coverage.

Popular automatic cars in the Philippines

Here are some popular choices in the Philippines' automatic car segment, ranging from budget-friendly to luxurious models.

Toyota Innova	Price: PHP 1.261 to PHP 1.808 million Key features:  Engine: 2.8L Diesel, 2755 cc, up to 172 hp Seating: 7-8 seats, ideal for families Fuel Efficiency: 21.6 kmpl Variants include E Diesel, XE, G Diesel, and V Diesel AT
Suzuki Ertiga Hybrid	Price: PHP 954,000 to PHP 1.178 million Key features: Hybrid MPV with excellent fuel efficiency Spacious 7-seater configuration Compact and budget-friendly, perfect for urban use
Nissan Kicks	Price: Starts at PHP 1.239 million Key features: Electric hybrid system with a single-speed gear reduction transmission Equipped with Nissan's innovative e-Pedal system for one-pedal driving Compact SUV with efficient urban and highway capabilities
Suzuki Jimny	Price: PHP 1.258 to PHP 1.698 million Key features: Compact 4x4 SUV with rugged off-road capabilities Engine: 1.5L gasoline, 101 hp Popular for its simplicity and versatility in urban and rural environments​
Hyundai Staria	Price: PHP 2.32 to PHP 3.03 million Key features: Premium MPV with up to 11 seating capacity 2.2L Diesel engine with 175 hp Luxurious interior designed for family or business use
BYD Dolphin (Electric)	Price: PHP 1.398 million Key features: Compact electric hatchback with a 94 hp motor Environmentally friendly with zero emissions 5-seater configuration with modern tech features​
Toyota Fortuner	Price: PHP 1.769 to PHP 2.65 million Key features:  Robust build and off-road capability Engine: 2.4L Diesel, 148 hp Spacious 7-seater with premium features​

Automatic car insurance Need & Benefits

Automatic car insurance provides financial protection tailored to the unique needs of automatic vehicle setups. While the basics align with standard car insurance policies, what makes a difference are specific factors such as repair costs for advanced systems like automatic transmissions.

Also Read: Here’s how to easily obtain car insurance quotes online

Why is it needed?

Increased adaptation of automatic cars

With the growing popularity of automatic cars, especially in Metro Manila and other urban hubs, the demand for specialized insurance has surged. Insurers now offer policies that cater to these vehicles' distinct needs and requirements.

Climate & road conditions

The Philippines experiences typhoons and flooding, which can severely damage a car’s engine and electronics. Comprehensive insurance ensures protection against such natural disasters, particularly for automatic cars prone to higher repair costs.

Added layer of confidence

Many first-time drivers prefer automatic cars for their simplicity. Insurance provides an added layer of confidence for new drivers navigating challenging roads.

Key benefits

Legal compliance: In the Philippines, every vehicle be it manual or automatic must have at least third-party liability insurance to operate legally on the road.

Protection from high repair cost: Automatic cars come with sophisticated tech like electronic transmission systems, whose repair work is very expensive. With insurance by your side, all the cost is well-managed.

Add-on features: Car insurance policies often include optional coverage such as zero depreciation, personal accident protection, and engine safeguarding.

Automatic car insurance coverage options

The car insurance providers in the Philippines offer the following coverage options to owners of automatic cars.

Third-party liability insurance: It is mandatory by law in the Philippines for a car owner to have CTPL (compulsory third-party liability insurance). This one covers damages to other vehicles or individuals caused by the policyholder's car.

Comprehensive insurance: Over and above CTPL, a car owner needs to have some added protection cover that offers financial security to the policyholders from damages caused to them and their car because of accidents, theft, or natural calamities.

Add-ons: Depending on the car owners’ needs and requirements, car insurance providers offer several add-on coverages including -

• Zero depreciation: Covers the full value of parts without accounting for wear and tear.
• Roadside assistance: Provides support in case of breakdowns.
• Engine protection: Safeguards against water damage and other engine-related issues.
  

Factors affecting automatic car insurance cost

The cost of automatic car insurance is influenced by several factors including -

• Vehicle age & model: Compared to budget-friendly vehicles, luxury models attract higher premiums.
• Driving history: Cars with clean driving records enjoy discounts, on the contrary frequent claims increase the cost of insurance.
• Geographical factors: Premiums are usually higher in arrears with high traffic density.
• Policy add-ons: Policy inclusions like zero depreciation or engine protection increase the overall cost but provide comprehensive coverage.

Automatic car insurance providers in the Philippines

Here are some of the top automatic car insurance providers in the Philippines offering tailored coverage for modern vehicles. All of them cater to a variety of needs, including protection for automatic vehicles, add-ons, and excellent claims support. The list includes -

• OONA Insurance (formerly MAPFRE)
• Malayan Insurance
• Pioneer Insurance and Surety Corporation
• Standard Insurance
• Perla Compania de Seguros
• FPG Insurance
• Cocogen Insurance

Automatic car Major challenges & their solutions

An automatic car owner faces several challenges, and a few of them find solutions via appropriate insurance coverage. For instance

Challenge	The cost of repair for an automatic transmission is significantly expensive.
Solution	It is advisable to opt for comprehensive insurance with zero depreciation coverage to ensure full claim benefits.

#2

Challenge	The claim process for advanced features present in an automatic car can be complex and involves additional documentation.
Solution	Always go for insurers with a reputation for a fast and hassle-free claim process.

Bottom line

Automatic car insurance is a necessity for Filipino drivers who embrace the convenience of automatic vehicles. From legal compliance to financial protection, tailored insurance policies ensure that the policyholder’s vehicle and peace of mind are safeguarded. All one needs to do is understand a little bit about automatic cars and their insurance requirements, to make an informed decision and enjoy modern-day driving tech.

Also Read: Understanding Pay-How-You-Drive Insurance in the Philippines