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Better Safe than Sorry: 5 Types of Car Insurances You Must Have in the Philippines

By marian on August 28th, 2015

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insurance policy paper and car keys

Finally bought that Toyota Innova for sale in the Philippines? Then it’s time to gather your loved ones and go on a road trip. But first you need insurance!

That’s right! Before you take your baby on its first spin, you need to get it some car insurance. Because no matter how good you are at driving, you and your hot ride are never 100% accident-free in the street; that means both of you may sustain damages. With insurance, the repairs of accident-related damages on your car will be taken care of by the insurance company.

Insurance is a good thing, but the process of choosing and getting one can be quite tricky. But don’t worry; since you’re reading this, you’re going to learn the different types of this all-important document for all drivers.

 

Compulsory Third Party Liability Insurance

In our country, there’s one kind of insurance that the law mandates you to get. This is called the compulsory third party liability insurance (CTPL). Upon the registration of your vehicle, you’re required to get this kind of insurance, as it will insure (with a coverage of Php 100,000) any third parties should they either encounter an accident while riding your car or suffer an injury caused by your own when they’re outside of it. The third party being discussed here, as defined by Section 373(c), Chapter VI of the Insurance Code of the Philippines , is any person who is not your relative. That means your friends or anyone you have no familial relations with.

 

Auto Liability Insurance

Third party individuals aren’t the only ones that can be affected by car accidents; there’s also a chance that you might damage the vehicle or property of others. It’s not that you’re careless; it’s just that unfortunate things can happen, even to the most careful of drivers. To save yourself from the hassle and the overwhelming costs of paying that up, you may want to get an auto liability insurance on top of your CTPL, just to be on the safe side.

 

Comprehensive Car Insurance

Finally, there’s an insurance where your own car (not other people or things) benefits. With a comprehensive car insurance, on top of the CTPL or Auto Liability Insurance, you can be rest assured that your vehicle is protected against accidental loss and damage that results from accidental collision and overturning, fire and lightning, theft and burglary, self-ignition, and malicious acts from third parties. All of these things, despite seeming unlikely, could happen to your ride.

 

Acts of Nature Coverage

A comprehensive car insurance, despite its name, doesn’t cover natural disasters like earthquakes, typhoon, flood, and other calamities. For that you’re going to need an insurance with an Acts of Nature coverage. And in our country, which is part of both the Storm Belt and the Pacific Ring of Fire, an insurance like this is feels like an absolute necessity.

 

Passenger Personal Accident Insurance

On the other hand, if you’re drive for a living, you should know you’re your passengers, those fare-paying individuals being transported by the public vehicle you’re driving, are not covered by the CTPL, as they’re not defined as third party. If you’re a good driver or business owner who actually cares about the welfare of your passengers, this is bad news. But don’t fret, for there’s still the Passenger Personal Accident Insurance.

This type of insurance is a requirement of the Land Transportation Franchising and Regulatory Board (LTFRB) for all land public transport operators before they can start their business. This covers each passenger with Php 150,000 should any untoward incident happen to them.

 

insurance policy paper with eyeglasses and pen

Accidents happen. So the moment they strike you and your car doesn’t have any insurance, you’re in for a lot of trouble. To be on the safe side, be ready for anything—and make sure you and your car are financially insured.

 

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