Owning a car, driving it around is an amazing experience. However, when on the road with other cars and pedestrians around, drivers need to drive cautiously and be prepared for the unexpected. How, you ask? While driving cautiously involves being aware of the surroundings, following traffic rules, maintaining your car, and practising defensive driving, being prepared for the unexpected refers to getting your car insured.
Car insurance is a vital aspect of owning a car in the Philippines, and it showcases the responsible side of the owner.
Here are a few basics of car insurance in the Philippines -
- It offers financial protection against accidents, theft, and other damages.
- Having the right insurance coverage makes a significant difference in tackling an unforeseen event.
- In the Philippines, the Insurance Commission (IC) regulates the insurance industry and makes sure every provider operates fairly and in a transparent manner.
- Compulsory Third Party Liability (CTPL) is the minimum car insurance required by law. It covers bodily injury or death caused to a third party due to a vehicular accident.
- Driving without the mandatory CTPL insurance in the Philippines can result in significant penalties, including fines and potential imprisonment.
- Comprehensive car insurance offers broad protection against various risks, including theft, vandalism, and natural disasters. It covers damages to your vehicle and third-party liabilities.
- It's essential to review the policy's fine print to understand what is excluded, such as wear and tear or driving under the influence.
- Acts of Nature (AON) coverage is considered vital for Filipinos living in disaster-prone areas. This coverage offers financial assistance if the vehicle gets damaged in events like floods, earthquakes, etc.
- Owners of high-value and luxury vehicles are advised to go for specialised insurance policies that cover additional benefits like coverage for spare parts, accessories, and even roadside assistance tailored for luxury cars.
Car insurance top FAQs answered by Zen Insure experts
From coverage amounts to specific vehicle-related queries, these FAQs offer Filipino car owners clarity on various aspects of car insurance. So, let’s get started.
A few basic questions -
Q. What coverage does Compulsory Third Party Liability (CTPL) Insurance offer?
Ans. CTPL insurance is mandatory in the Philippines for all motor vehicles. It offers the policyholder financial protection against damage or injuries to third parties. Its key highlights include third-party damage/injury coverage, mandatory for all MV owners, and required for motor vehicle registration at the LTO.
Q. What coverage does a car owner get under comprehensive insurance?
Ans. Comprehensive car insurance coverage goes beyond CTPL insurance. It provides the policyholder protection against a wide range of risks, including theft, fire, flood, damage to the car, etc.
Note that it is not mandatory, but highly recommended as it provides the policyholder owners immense peace of mind.
FAQs related to car insurance - Coverage, exclusion, inclusion, claim, & more
Q1. How much insurance coverage is required by an average Filipino car owner?
Ans. The amount of insurance coverage a driver needs depends on several factors, including the vehicle's value, driving habits, age, location, and financial capacity. Always assess these factors thoroughly to determine the appropriate level of coverage.
Q2. Can a used or imported car be insured in the Philippines?
Ans. Yes. Second-hand and imported cars can be insured in the Philippines. However, the owners would be required to provide a few additional documents, including proof of ownership and vehicle valuation reports.
Q3. Are aftermarket modifications and accessories covered under car insurance?
Ans. A standard car insurance policy in the Philippines mostly doesn’t cover aftermarket modifications and accessories. In case a car owner needs such coverage, he/she will have to declare these modifications to the insurance provider and then include them in the coverage.
Q4. Does car insurance cover drivers other than the owner?
Ans. It all depends on the car insurance policy. For instance, third-party liability insurance only covers vehicle-related wrongdoings (like injury or death) made to other people (third-party); it excludes their passengers, driver, and family members. There are other policies as well that cover the driver, but at an additional premium.
Q5. What to do immediately after an accident?
Ans. The first thing you should do after a car accident is assess everyone’s well-being and gather necessary information. The latter includes taking photos of the damage, noting the location and time of the accident, and collecting witness statements if available.
Photo from BankbazaarQ6. How to file an insurance claim in the Philippines?
Ans. Filing a car insurance claim involves several steps, including notifying the insurer, filling out the claim form, submitting the required documents, and cooperating with the insurance adjuster in the investigation.
Q7. What documents are required to file a car insurance claim?
Ans. Policyholders usually need the following documents to support their claim: a police report (if available), photos of the damage, repair estimates, and witness statements.
Q8. What are some of the most common reasons for insurance claim rejection in the Philippines?
Ans. Some of the most common reasons for claims rejection include incomplete documentation, late filing, or misrepresentation.
Q9. What practices can ensure approval of an insurance claim?
Ans. To make sure that your claims get approved, ensure the following: the claim form is duly accomplished, all the required documents are submitted, and all the information provided is accurate.
Q10. What factors affect car insurance premium rates?
Ans. The car insurance premium is based on various factors that insurance providers use to assess risk and determine the likelihood of you making a claim. This includes vehicle type, age, and market value.
Q11. Are high-end cars more expensive to insure?
Ans. Yes, luxury and high-performance cars usually cost more to insure due to higher repair and replacement costs.
Q12. Does a driver’s profile and history impact premium rates?
Ans. Yes. A driver’s profile and history play a crucial role in determining the car insurance rates. Factors such as age, driving experience, and history of accidents or traffic violations are taken into account while deciding the premium.
Photo from PolicyBazaarQ13. Is it possible to reduce car insurance premiums in the Philippines?
Ans. Yes, with the right knowledge of discount opportunities and smart insurance choices, a Filipino driver can save money on insurance premiums. Some of the most common ways include -
- Taking advantage of the discounts offered by insurance providers. Some insurers offer cut-offs to drivers with a clean driving record and those who have completed defensive driving courses.
- Policyholders who insure multiple vehicles with the same provider can qualify for significant discounts.
- Bundling car insurance with other insurance policies can also lead to substantial savings.
- Many insurance providers in the Philippines reward their loyal customers with loyalty benefits and renewal incentives.
Q14. Will installing security features help reduce insurance premiums?
Ans. Yes, installing security features in your car can lead to lower insurance premiums. We’ll suggest that you invest in anti-theft devices, GPS tracking systems, and immobilisers.
Q15. What is not covered under a standard car insurance policy in the Philippines?
Ans. A standard car insurance policy in the Philippines typically omits coverage against certain events or damages. For instance, wear and tear, a car driven in unauthorised areas, by unauthorised personnel or for unauthorised purposes, and a car used for racing or competitive events.
Q16.How long does the car insurance claim process take in the Philippines?
Ans. The car insurance claim process time in the Philippines can vary significantly depending on the claim's complexity. While a normal claim takes from a few days to a couple of weeks, a complex case takes a little longer.
Q17. What is the most effective way to compare car insurance policies?
Ans. Comparing car insurance policies is not just about analysing premium costs by different providers, but involves consideration of several factors before finalising the deal, including coverage options & limits, payment flexibility, insurer’s reputation, customer service, settlement ratio, and claim process smoothness.
Q18. What are the consequences of driving without insurance in the Philippines?
Ans. Driving without insurance can result in significant penalties. For instance, if caught by the authorities without CTPL insurance, be ready to pay a fine, and there might be other legal consequences (depending on the situation).
Bottom line
Getting the right car insurance policy is a pretty daunting task; however, with the right knowledge, a car owner can make an informed decision that best suits his/her needs. In this article, we’ve explored the top FAQs related to car insurance in the Philippines, covering topics ranging from the basics of car insurance to its cost and availability of discounts. Further, reading the blog, you’ll get to know about the legal requirements & types of insurance, and factors affecting premiums, all of which will better equip you to select a policy that provides adequate coverage.
FAQs
Q1.) What is the minimum car insurance coverage required in the Philippines?
Ans. The minimum car insurance coverage required by a Filipino car owner is Compulsory Third Party Liability (CTPL), which covers bodily injury or death of third parties.
Q2.) Can I get a discount on my car insurance premium?
Ans. Some insurance providers offer discounts on car insurance premiums, such as loyalty discounts or bundle discounts for purchasing multiple insurance policies.
Q3.) What are some of the top insurance companies in the Philippines?
Ans. A few well-recognised insurance providers include Malayan Insurance, Prudential Guarantee, FPG Insurance, Pioneer, and AXA Philippines.
Q4.) Does car insurance cover theft?
Ans. Yes. A comprehensive car insurance policy covers theft.
Q5.) Is it possible to upgrade/revise a car insurance policy?
Ans. Yes, most insurers in the Philippines allow policyholders to upgrade their policies anytime.
