Owning a car means different things for different people. While to some it brings convenience, to others it is a symbol of freedom or a sense of accomplishment. But to make sure that this happy feeling lasts, it is essential to protect your investment - and that’s where car insurance comes into play.
Despite being so essential, many Filipinos find car insurance a bit complicated and confusing. They have so many concerns regarding the premium, coverage, claim, renewal, etc. All this causes many car owners (new and seasoned) a lot of stress, and that’s the reason why we have created this guide, wherein we talk about some of the most common car insurance worries and how to fix them.
Let us now begin with the discussion, but first, a brief on car insurance in the Philippines.
Car insurance in the Philippines
What is car insurance, and why is it required? Car insurance is nothing but a contract between you and the policyholder, wherein the latter promises to protect you and your car against the risk of theft, accident, collision, damage, etc.
Speaking of the requirement, it is a smart way to protect your investment and eliminate any uncertain financial liability. Let us now check out the different types of car insurance coverage a car owner gets in the Philippines -
- Compulsory Third-Party Liability Insurance: This one is a must for all Filipino car owners; it is needed even before car registration. Coverage? It offers protection against third-party injury or death.
- Comprehensive Insurance: Not mandatory but highly recommended. It offers coverage against damage to the insured car due to an accident, theft, fire, vandalism, riots, etc.
- Add-ons: Insurance providers also offer a few other coverages at an additional premium, which you can pick as per your requirements. This can be Acts of God, Personal Accident, or even Roadside Assistance coverage.
Photo from FreepikCTPL vs. Comprehensive
The CTPL offers minimum coverage; it is required by law and, therefore, the cheapest option around. On the other hand, comprehensive insurance gets you complete protection and thus costs more. However, it saves you from massive liabilities post-accident/collision/disaster.
Also Read: CTPL vs. Comprehensive Car Insurance: What’s the Difference?
Common car insurance worries & their solutions
Concern 1: Car insurance is expensive
Fix: It is advisable to compare quotes from different insurance providers, adjust your coverage according to your needs, and opt for higher deductibles. It is also a good idea to follow safe driving practices - all this will lower your premium.
Concern 2: I’m not sure which policy or coverage is right for me
Fix: Don’t worry, take baby steps. First, opt for CTPL insurance. If your car is valuable or new, we’d suggest getting comprehensive insurance as well; it will give you that added protection. Insurers also offer add-ons that you can pick as per your specific requirements.
Concern 3: Will my insurance cover flood and typhoon damage?
Fix: Open your policy documents or call your insurance agent and ask if your car insurance policy includes ‘Acts of God’ coverage. If not, you can ask the provider to include it in your policy.
Concern 4: I am not sure about the documents required to file my insurance claim
Fix: Typically, insurers ask for the following documents from you while filing a claim - vehicle’s OR/CR, a police report, photos of damage, insurance policy, and repair cost estimates.
Concern 5: The claim process takes a long time to get settled
Fix: Go for an insurer that offers quick claim settlement. Remember to keep all the documents handy and be truthful with the insurer. This will avoid delays in the claim process.
Also Read: Don't panic after an accident — Here's how to file a comprehensive claim
Concern 6: I am not sure whether my insurance policy covers theft
Fix: If you have only opted for CTPL insurance, then no. However, comprehensive insurance usually covers car theft.
Concern 7: What to do if my car insurance policy lapses
Fix: Contact your insurer asap. Some providers allow for policy revival; if that’s not an option, you’ll need to apply for a new policy.
Image from ShutterstockConcern 8: I am concerned about the rise in my insurance premium after a claim
Fix: It is a fact that if you do not file a claim for an entire year, you’ll be eligible for a ‘No Claim Bonus’ (which many insurers offer). Try not to file a claim for minor repairs, as it will be cheaper to take care of it yourself (especially if the deductible is more than the repair cost).
Concern 9: I do not fully understand the concept of deductibles
Fix: Do not worry, it is pretty simple. A deductible is the amount of money you will have to pay before insurance covers the rest. It is non-refundable and is set at the time of finalising the policy. Also, a higher deductible leads to a lower premium.
Concern 10: What if I want to cancel my policy? Is it possible?
Fix: Yes, you can cancel your policy at any time. Just inform your insurer, while some insurers will refund the unused premium, others might charge cancellation fees.
Concern 11: I am afraid of getting a fake online insurance policy
Fix: Do not overthink. Always go for reputable insurance providers. Check the site's authenticity and verify the provider with the Insurance Commission.
Concern 12: What if I am unable to remember the policy renewal date
Fix: Don’t worry, as most insurers send reminders. For extra caution, you can mark your calendar for a reminder.
Concern 13: I'm not sure if my insurance policy is valid outside the Philippines
Fix: Usually, a policy is only valid within the country’s border, unless you have a special international coverage.
Also Read: Car insurance claims in the Philippines: Common scenarios and claim types explained
Concern 14: I am concerned about the ingenuity of the parts used during repair at the provider’s approved workshop
Fix: No worries, you can ask your provider directly if the parts used are generic replacement or Original Equipment Manufacturer (OEM) parts.
Concern 15: I am not sure how to save money on insurance premiums
Fix: It is pretty easy; you can do so by maintaining a clean driving record, installing anti-theft devices in the car, and avoiding unnecessary coverage.
Concern 16: I am not sure about getting Acts of God coverage
Fix: If you live in an area or drive to a location that rarely gets affected by natural calamities, you could avoid Acts of God coverage.
Photo from FreepikConcern 17: I am concerned about the hidden charges in my policy
Fix: Just read the policy fine print before signing. In case of any doubt, don’t hesitate to ask. Further, ask your agent to elaborate on all the charges.
Also Read: Top 5 mistakes people make when buying car insurance in the Philippines
Concern 18: Are passengers in my car covered under my policy
Fix: Only if your policy includes ‘Personal Accident' coverage. If it is not a part of your policy, ask your provider to include it as soon as possible.
Concern 19: Will my insurer send help, like towing or refuelling service, if I get stranded
Fix: Only if your insurance policy includes roadside assistance coverage; if not, you can get it included by asking your provider.
Concern 20: I am concerned about paying the annual premium
Fix: Don’t worry about the big annual premium payment, as many providers offer the facility of monthly or quarterly payment plans.
Also Read: How your driving habits impact your insurance rates – What you need to know
Bottom line
If you are one of those car owners who find car insurance complicated, then don’t worry, you are not alone. There are many Filipinos out there who feel car insurance is difficult, but once the basics are straightforward and concerns are addressed, it is no longer the case. Instead, car insurance is a powerful tool to keep your investment (the car) protected.
Just by choosing the right provider & policy, keeping the documents ready, and understanding the policy inclusions, exclusions, & deductibles, you can drive along the busy streets of Manila or cruise along the scenic countryside view - with peace, as you know that you are protected.
Also Read: How to avoid claim rejections: Must-read insurance advice for Filipino drivers
FAQs
Q1. What is the cheapest car insurance policy available?
Ans. In the Philippines, CTPL insurance is the cheapest option; however, it offers minimal coverage (third-party injury/death).
Q2. How much does CTPL insurance cost?
Ans. Usually, CTPL insurance costs PHP 1000 to PHP 1500 annually.
Q3. Can I pay my insurance premium in instalments?
Ans. Yes, many insurance providers offer monthly or quarterly payment plans to policyholders.
Q4. Can I insure my used car?
Ans. Yes, every motor vehicle, new or old, needs to be insured. However, the premium for used car coverage options may vary.
Q5. Are towing and refuelling services included under the insurance policy?
Ans. Only if your insurance policy includes roadside assistance coverage.
Q6. Can I switch my insurer mid-policy?
Ans. Yes, you can switch your insurer at any time; however, do inquire about cancellation fees.
Q7. Should I file a claim for minor dents or scratches?
Ans. No, it is not advisable to raise a claim against minor dents or scratches, as it will affect your claim history.
Q8. What if I miss my policy’s renewal date?
Ans. In that case, your policy might lapse, and you’d need to get a new policy.
Q9. What is ‘no claim bonus’?
Ans. No claim bonus refers to the discount given to the policyholder when no claim is raised for a year.
Q10. Does car insurance cover passengers?
Ans. Only if your policy covers Personal Accident coverage.
Also Read: Don't panic after an accident — Here's how to file a comprehensive claim
