In the Philippines, motorcycles or any two-wheeler for that matter are considered a practical choice of transportation - especially in the ultra-crowded urban areas (like Metro Manila) and the rural regions with rough terrains. However, like a coin has two sides, this scenario has a harsh reality: increased motorcycle usage has increased the risk of accidents, damage, and theft.
And therefore, in the end, it comes down to motorcycle insurance.
You are mistaken; if motorcycle insurance is a luxury to you, it is a necessity for every Filipino. If you are a new motorcycle owner or someone looking to switch or renew their insurance policy, then this guide is a must-read.
Here, you’ll get to learn to choose the best motorcycle insurance policy, tailored to your requirements.
So, let’s begin …
Motorcycle insurance - Why is it a must for every Filipino rider
If you are getting motorcycle insurance, it doesn’t just mean that you are complying with the government regulations - but it’s more about protection, getting a safety net for yourself, your passengers, your vehicle, and others on the road.
Summarising, as to why motorcycle insurance matters -
- Legal requirement: All motor vehicle owners in the country are required to obtain Compulsory Third Party Liability (CTPL) insurance to have their vehicle registered at the LTO.
- Financial security: With motor vehicle insurance by your side, you stay protected from massive out-of-pocket expenses arising from an accident or collision.
- Peace of mind: Knowing that your insurance policy has you covered (against third-party liability, theft, accident, fire, flood, etc.) allows you to ride in peace.
Also Read: What is motorcycle insurance, and why do Filipinos need it
Motorcycle insurance policies available in the Philippines
Before choosing an insurance policy, it is essential to know the different options available and know what each of them offers.
Compulsory Third Party Liability (CTPL)
CTPL is mandatory for all vehicle owners in the Philippines and offers basic protection. For instance, it covers bodily injury or death of a third party caused by the insured vehicle. However, it does not cover the rider and pillion, and CTPL does not cover damages to the insured motorcycles. Note that without CTPL, you can not get your vehicle registered.
Comprehensive insurance
Unlike CTLP, comprehensive motorcycle insurance is not mandatory; however, it offers wide-ranging protection to the policyholder. Overall, this coverage is ideal for riders who want more than minimal protection.
Also Read: Why motorcycle riders need both CTPL & comprehensive coverage
Photo from FreepikAdd-ons
Motorcycle insurance add-ons are optional coverage that you can attach to the base policy for enhanced protection against real-world risks, such as personal accident, third-party property damage, fire, and natural disasters (it’s better to confirm with the insurer what is covered and what’s not, as coverage varies between insurers). Here are a few popular add-on options -
- Acts of Nature (AON) coverage: This add-on provides coverage for damages to the motorcycle resulting from natural disasters, such as landslides, earthquakes, volcanic eruptions, floods, and other disasters common in the Philippines. It is ideal for riders located in or commuting to low-lying areas; however, it might increase the premium slightly.
- Theft and carjacking coverage: Did you know that theft-related claims are relatively common in the Philippines? Having this add-on can be beneficial, as it offers compensation for a stolen vehicle and reimbursement for the damage caused by attempted theft.
- Strikes & riots coverage: It covers damage to the motorcycle due to civil unrest or protest.
- Standard accessories coverage: This coverage protects against damage to and loss of the factory-standard parts of the motorcycle.
- Inter-island transit coverage: This coverage keeps the vehicle protected while it is transported between islands via sea vessels.
- Third-party property damage: This coverage offers financial aid in case your motorcycle damages someone else’s property.
- Roadside assistance: This coverage provides policyholders with emergency services, including towing, battery jump-starts, flat tire changing, and emergency fuel delivery.
- Helmet damage protection: Some insurers offer helmet protection that covers direct and accidental damage to the protective gear.
- Personal belongings protection: This coverage protects riders' belongings against loss or damage resulting from fire, collision, or theft.
Extra bit -
Cost of add-ons: The cost of each add-on for motorcycle insurance varies; mostly, it ranges from PHP 300 to PHP 1,500 annually.
Buying motorcycle insurance - Factors to consider
Budget and premium
First and foremost, evaluate how much you can afford to pay for a premium that too without compromising on savings and monthly budget. Verify if the provider offers flexible payment options (monthly, quarterly, and annually) that can help you maintain a stable cash flow.
Coverage inclusions and exclusions
Remember, it is not just about what your policy covers, but also what it doesn’t. For instance, most insurance providers do not cover modifications and off-road usage unless declared.
Claim process and customer support
When choosing an insurance policy, be sure to review the claim process, as a slow and often denied claim process won’t help. Furthermore, look for a provider with fast, 24/7 customer support.
Insurer’s reputation and track record
Always choose a provider with a good reputation and positive customer reviews. Not to forget, they are certified by the Insurance Commission.
Top motorcycle insurance providers in the Philippines
Here are some well-known and IC-certified insurance companies that you can consider for your motorcycle insurance -
- Malayan Insurance
- Pioneer Insurance
- Oona
- Paramount Life & General Insurance
- Cocogen
Photo from NeodriftHow to apply for motorcycle insurance
If you are looking for motorcycle insurance, then it can be purchased in two ways: online and in person. Both of these have their advantages and disadvantages. For instance, while online insurance is fast, effortless and cheap, it lacks personalised guidance. On the other hand, the walk-in insurance application process is paper-based and offers direct consultation to clients, but it is more time-consuming and has restricted operational hours.
Whichever insurance purchasing mode you prefer, what remains common is the document requirement, which includes - vehicle’s OR/CR, valid ID, etc.
How to save money on motorcycle insurance
- Bundle your insurance polices with one provider to take advantage of discounts.
- Before choosing a provider, compare at least three to four providers.
- Avoid over-insuring; don’t pay for coverage you do not need.
- Make sure you ask for discounts (especially if you have a clear driving and claim record).
What to avoid when buying motorcycle insurance
- Overlooking the policy fine print.
- Not checking the policy exclusions.
- Delaying policy renewal may lead to higher rates or policy lapse.
- Assuming all policy plans are the same, as they are not.
Maintaining your motorcycle insurance policy
After purchasing a motorcycle insurance policy, it is essential to renew it on time to ensure continuous protection. We suggest setting reminders and conducting a pre-renewal checkup, which includes verifying the relevance of existing add-ons, updating the vehicle’s value, and notifying the insurer of any modifications or aftermarket accessories.
Also Read: Motorcycle insurance in the Philippines: Top FAQs answered
Bottom line
Buying insurance for your motorcycle doesn’t have to be an overwhelming experience. For a seamless experience, simply understand the different types of coverages, compare plans, and assess your insurance needs based on your riding style. Doing so will equip you to make confident and competent choices.
Remember, investing in the right insurance policy today would protect your investment and future on the road.
FAQs
Q1. Is CTPL insurance enough for motorcycle rides?
Ans. CTPL insurance is only the minimum requirement by law; it offers protection to the third party in case of an accident. For complete protection, comprehensive insurance is recommended.
Q2. How much does motorcycle insurance cost in the Philippines?
Ans. CTPL motorcycle insurance in the country typically costs between PHP 300 and PHP 700. On the other hand, comprehensive insurance, with wide coverage range from PHP 2,000 to PHP 5,000 annually. The latter depends on the vehicle’s value and coverage.
Q3. Is it possible to apply for motorcycle insurance online?
Ans. Yes. Many insurance companies now offer policyholders online services, enabling them to purchase and file claims online. Furthermore, third-party insurance providers are also a legitimate source for obtaining instant quotes and buying insurance.
Q4. Does comprehensive insurance cover damage done to the motorcycle from a flood?
Ans. Most comprehensive insurance policies cover damage from floods; however, it is essential to verify this with your provider. If not, then it is recommended to get the Acts of God add-on.
Q5. Is it possible to cancel my motorcycle insurance policy?
Ans. Yes. Most insurance providers allow policy cancellation; however, the terms and conditions may vary from company to company.
Q6. What should I do in case of an accident?
Ans. Prioritise safety first, then notify the authorities and take pictures of the site and damaged vehicle. Contact the insurer as soon as possible for assistance with your claim.
Q7. Is insurance transferable if I sell my motorcycle?
Ans. If you are selling your motorcycle, then either transfer or cancel the insurance policy. Please notify your insurer of the same for better assistance.
Q8. What are the consequences of riding uninsured?
Ans. There are several consequences, such as facing fines, penalties, and issues with your LTO registration.
Q9. Can I insure my second-hand motorcycle?
Ans. Yes. Be it a new, old, or used vehicle, all are eligible for insurance.
Q10. Does motorcycle insurance cover a pillion rider?
Ans. It depends on your insurance policy; some comprehensive policies with passenger personal accident coverage include coverage for pillion riders.
Q11. Do I need to submit a police report when filing a motorcycle insurance claim?
Ans. Yes, especially in cases of motorcycle theft, damage due to vandalism, riots, or accidents.
Q12. What coverage does a typical motorcycle insurance offer in the Philippines?
Ans. Most motorcycle insurance policies in the Philippines include coverage for damages resulting from accidents, collisions, theft, fire, flood, and other similar events.
Q13. Will I get a discount from the provider for insuring multiple motorcycles?
Ans. Yes, most insurance providers offer discounts on insuring multiple vehicles.
Q14. Are helmets covered under motorcycle insurance in the Philippines?
Ans. Most motorcycle insurance policies do not cover helmets; however, some providers offer extended coverage for helmets as an optional add-on.
Q15. Is it possible to upgrade a motorcycle insurance policy later?
Ans. Yes, most insurance providers allow policyholders to upgrade their policies at any time, enabling you to tailor your policy to fit your needs better.
Also Read: CTPL vs. Comprehensive Motorcycle Insurance: A simple guide for riders
