If you are a Filipino considering buying a motorcycle, you must get insurance hand-to-hand. Why? It is not only mandatory by law but also a key requisite for LTO registration of your two-wheeler.
Remember, your job doesn’t end with purchasing the motorcycle; rather, it begins. There’s a lot that needs to be done to be able to ride around freely on the roads. For instance, acquiring the vehicle’s OR and CR, driver’s license, and an appropriate insurance policy. The first two tasks can be completed by visiting the LTO, and for the latter, you can read our blog on ‘how to get motorcycle insurance’.
Though getting an adequate insurance policy is a task, with the right knowledge, you can sail through the process quite easily. During this learning process and even when you are out to get insurance for your motorcycle, you will have many questions and doubts. And so to help you during those confusing times, we have curated a list of top motorcycle insurance-related FAQs.
Make sure to refer to them now and whenever you feel stuck at any step of acquiring an insurance policy.
For your convenience, we have divided the FAQs into different sections, thus helping you find answers to your questions faster and more efficiently.
So, without any delay, let’s begin …
FAQs related to - Basics of Motorcycle insurance in the Philippines
Every motorcycle rider in the Philippines needs to understand the basics of motor vehicle insurance. This will not only help you navigate the roads safely but will also protect you against financial losses due to accidents, theft, or damage to the vehicle.
Q1. What is motorcycle insurance, and why is it important?
Ans. If you own a motorcycle in the Philippines, then you need to get a motorcycle insurance policy. Therefore, motorcycle insurance is nothing but a contract between the owner and the insurance company to protect the former against risks associated with riding the vehicle. In the Philippines, where the number of vehicles on the road is significantly high, getting motor vehicle insurance is no less than a lifesaver.
As for the importance of motorcycle insurance, it lies in its ability to mitigate financial risks. For instance, in the event of an accident, motorcycle insurance can help cover medical expenses, vehicle repair costs, and even legal fees. It ensures that the policyholder doesn’t get burdened with significant financial expenses.
Q2. How does motorcycle insurance work in the Philippines?
Ans. The working of motorcycle insurance, or for that matter, any insurance policy, is based on the pool funding basis. Here, the insurance company collects premiums from multiple policyholders and then provides coverage to those who need it.
Step-by-step working includes -
- The rider purchases an insurance policy.
- The premium is paid to the insurer (amount depends on various factors).
- Insurance coverage is activated, which protects the riders against specific risks.
- In the event of an incident, the rider files a claim, and the insurer processes it as per policy terms.
Photo from FreepikFAQs related to - Motorcycle insurance coverage in the Philippines
Q3. What is Compulsory Third Party Liability (CTPL) Insurance?
Ans. CTPL insurance is a mandatory insurance requirement in the Philippines for all motor vehicles, including motorcycles. It offers the rider’s financial protection against damage or injuries to third parties.
Here are its key highlights -
- Covers third-party damage/injury
- Mandatory for all motorcycle owners
- It is required for motor vehicle registration at the LTO
Q4. What coverage does comprehensive motorcycle insurance offer?
Ans. The coverage of comprehensive motorcycle insurance goes beyond that of CTPL insurance. It offers the rider financial protection against a wide range of risks, including theft, fire, flood, damage to the motorcycle, etc.
Though it is not mandatory, it is highly recommended as it provides motorcycle owners with peace of mind. Why? As it protects them against various unforeseen events like theft, vandalism, natural disaster, etc.
Q5. What insurance add-ons are available to a rider? Are they beneficial?
Ans. In addition to CTPL and comprehensive insurance, insurance providers in the Philippines also offer several add-ons to the riders. These add-ons are recommended for their enhanced coverage, which includes roadside assistance, towing services, and other specialised coverages.
However, riders are recommended to first analyse their needs and budget before making any insurance-related commitment.
FAQs related to - Motorcycle insurance legal requirements and regulations
Q6. Is motorcycle insurance mandatory in the Philippines?
Ans. Yes. In the Philippines, every motorcycle owner is required to get his/her ride insured. The bare minimum requirement is that of Compulsory Third Party Liability (CTPL) insurance that offers the policyholder coverage for third-party injuries or death resulting from an accident involving your motorcycle.
Q7. What are the consequences of riding without insurance in the Philippines?
Ans. Riding without insurance in the Philippines can result in significant penalties. Yes, if you are caught by the authorities riding without CTPL insurance, be ready to pay a fine, and there might be other legal consequences (depending on the situation).
Note, since comprehensive insurance is optional, there is no direct penalty. However, you might face financial loss in case of insurance due to a lack of coverage.
FAQs related to - Cost/pricing of motorcycle insurance in the Philippines
Q8. How much does motorcycle insurance cost in the Philippines?
Ans. The cost of motorcycle insurance in the Philippines varies widely, and it depends on several factors too. However, the basic compulsory third-party liability insurance typically starts at around PHP 250 to PHP 300 annually. Comprehensive insurance, on the other hand, can range from PHP 2k to PHP 9k, depending on the bike’s value, make, and model.
Q9. What factors influence motorcycle insurance premiums in the Philippines?
Ans. Motorcycle insurance premium in the Philippines is influenced by not one but several factors. Understanding these factors can help a rider manage insurance costs more efficiently.
Some common factors include -
- Motorcycle type and value: High-value or high-performance motorcycles typically attract higher premiums due to the increased risk of theft or accident.
- Rider’s profile & history: Age, riding experience, and claims history of the rider play a crucial role in deciding the premium. Usually, younger riders or those with a history of claims may face higher insurance costs.
- Coverage & scope: Higher coverage limits result in higher premiums, while lower coverage limits lead to lower premiums
- Deductibles: Deductible is inversely proportional to the premium amount. So, while lower deductibles result in higher premiums, higher deductibles lead to lower premiums.
FAQs related to - Motorcycle insurance providers in the Philippines
Q10. Which insurance company offers the best motorcycle insurance in the Philippines?
Ans. Many insurance providers in the Philippines stand out in the market for their insurance coverage packs and customer service. Some of the top names in the list, in no specific order, are AXA Philippines, Prudentialife, Oona, Malayan Insurance, SGI Philippines General Insurance Company, FPG Motor Insurance, and Metropolitan Insurance Company Inc.
Q11. How to compare motorcycle insurance providers effectively?
Ans. Remember, comparing insurance is not just about premium cost; a rider needs to consider several factors before finalising the deal. It includes -
- Accessing coverage options & limits
- Evaluating premium costs
- Scope of payment flexibility
- Checking the insurer’s reputation & customer service
- Reviewing the settlement ratio
- Claim process smoothness
FAQs related to - Motorcycle insurance claim process
Q12. How to file motorcycle insurance claims?
Ans. There are several steps involved in filing a motorcycle insurance claim, including -
Notifying the insurance provider about the incident, via a dedicated claims hotline or online portal.
Providing details about the accident, including the date, time, location, and description.
Submitting the required documents for claims processing.
Q13. What documents are required for filing a motorcycle insurance claim?
Ans. Typically, the documents required for motorcycle insurance claims can vary depending on the insurance company and the nature of the claim. However, some commonly included documents include - police report, photos of the incident, repair estimates, and vehicle registration papers.
Q14. How long does the motorcycle insurance claim process usually take in the Philippines?
Ans. The motorcycle insurance claim process varies significantly depending on the complexity of the claim and the efficiency of the insurance company. For instance, while a simple claim process might take a few days, a complex case might take several weeks or even months.
Photo from NeodriftFAQs related to - Common exclusions & policy limitations of motorcycle insurance
Q15. What is not covered under a standard motorcycle insurance policy?
Ans. A standard motorcycle insurance policy in the Philippines typically excludes coverage for certain events or damages. For instance, wear and tear of motorcycles, riding motorcycles in unauthorised areas or for unauthorised purposes, and using motorcycles for racing or competitive events.
Q16. What is the coverage limitation for high-performance or customised motorcycles?
Ans. Insurance companies may have specific requirements or restrictions for high-performance or customised bikes. For instance, higher premiums or special coverage options.
FAQs related to - Minimising motorcycle insurance premiums
Q17. Are discounts and promotions offered on motorcycle insurance?
Ans. Yes, many insurance providers offer various discounts that significantly reduce premium costs. These include - multi-policy discounts, good rider discounts, student discounts, etc.
Q18. How to lower insurance costs without sacrificing coverage?
Ans. To lower your insurance costs without compromising on coverage, optimise your policy. For instance, adjusting your deductible, dropping unnecessary coverage, and taking advantage of low-mileage discounts (if you are not a frequent rider).
Q19. Does installing security features affect my premium?
Ans. Yes, installing security features on your motorcycle can lead to lower insurance premiums. So, invest in anti-theft devices, GPS tracking systems, and immobilisers.
Bottom line
Getting the right motorcycle insurance is a pretty exhausting task; however, with the right knowledge, a rider can make an informed insurance decision that best suits his/her needs. In this article, we’ve explored the top FAQs about motorcycle insurance in the Philippines, covering topics from the basics to the cost of insurance. Further, you will understand 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.) Does motorcycle insurance cover helmets?
Ans. Usually, a helmet is not covered in a motorcycle insurance policy.
Q2.) Is it possible to upgrade an insurance policy?
Ans. Yes, most insurers allow policyholders to upgrade their policies anytime.
Q3.) Does motorcycle insurance cover theft?
Ans. Yes. A comprehensive insurance policy covers theft.
