Driving a car is fun, but riding on a motorcycle with all the fresh breeze hitting your face gives a different kind of pleasure. However, what’s common between the two is insurance. Yes, it doesn’t matter if you are a car or a motorcycle owner; what is essential (also compulsory) is insurance.
While we have discussed car insurance in detail in the past, it is time to shed some light on motorcycle insurance in the Philippines, starting with the basics, of course. In this article, we’ll educate you about the meaning, importance, cost, and coverage options related to motorcycle insurance. We also have some additional tips on finding the right policy and insurance provider.
Believe us, just read this article, and you will be good to get your new, beloved motorcycle insured at the right price with optimal coverage.
So without any delay, let us get started -
Understanding motorcycle insurance
| What is Motorcycle Insurance? Motorcycle insurance is nothing but a financial protection package for your two-wheeler. It offers coverage against risks like accidents, theft, fire, floods, etc. Overall, it takes care of damages to the motorcycle and third-party liability. |
Here’s a great one-line explanation: Motorcycle insurance does not or can not prevent accidents/damages, but it prevents such unfortunate events from ruining you financially.
Do you really need motorcycle insurance?
As a rider, it is your responsibility to ‘ride safely & ride insured’. This holds true for car owners as well, but it’s a fact that motorcycle riders have a bad reputation when it comes to safety. This is due to the select few notorious riders who, just for the sake of their fun and enjoyment, put others' lives at risk, violate traffic laws & speed regulations. Furthermore, as per statistics, riding a motorcycle carries a high risk of collision and accident, compared to other modes of commute.
In such a case, having a financial safety net becomes crucial to protect you from the burden of an accident or collision cost, including repair or replacement cost, medical bills, damage to third parties and or their property, etc.
Thus comes into the picture - Motorcycle Insurance. Just like a car insurance policy, a motorcycle insurance policy allows the owner to enjoy every moment on the new ride. It offers the much-needed peace of mind in today’s chaotic world.
It is assumed you are a responsible rider who follows the speed limit, traffic rules, and is fully aware of the road signs. But does that make you and your motorcycle immune to accidents, collisions, or any kind of damage? Obviously not. Plus, compared to cars, motorcycles are a risk for commuting.
Now, god forbid, if the motorcycle is in the hands of a new, exciting young rider, the fear becomes real. Here are a few more factors associated with motorcycles which will convenience you get insurance.
- Lack of protective gear like an airbag & seatbelt
- No hard exterior, leaving the rider and passenger exposed
- Five times more likely to get involved in an accident
The usefulness of motorcycle insurance is clear. It offers protection against financial liabilities associated with accidents like medical bills and repair & replacement costs. Further, it also takes care of losses due to theft and natural disasters.
Bottom line. Motorcycle insurance is the choice of a wise rider.
Motorcycle Insurance in the Philippines
In the Philippines, Motorcycle insurance is broadly categorised into two sets - Compulsory Third Party Liability and Comprehensive Insurance. Other than that, there are a few other add-ons that offer need-based coverage, all of which you need to understand to ensure optimal coverage.
Compulsory Third-Party Liability (CTPL) insurance—This is the bare minimum insurance requirement that a rider can’t ignore. It covers third-party injury or death in case of an accident involving the insured motorcycle.
Comprehensive insurance - Though not mandatory, but highly recommended; it offers protection against theft, vandalism, damage caused by natural disaster, etc.
Here we’d also like to mention a few popular add-on coverages, including
Acts of God - It offers assistance when the insured vehicle gets damaged due to natural disasters like earthquakes, typhoons, floods, etc.
Collision - It offers financial protection against damages caused to the motorcycle due to a collision with another vehicle.
Own Damage - This coverage offers protection to the insured motorcycle.
Personal Accident - This one looks after the insured after the accident. It pays for expenses related to death, disablement, and loss of income.
Photo from FreepikWhy is every Filipino rider advised to get motorcycle insurance?
Fulfils legal requirement—In the Philippines, every motor vehicle owner, be it motorcycle or car, is required to get third-party liability insurance, if not anything else. So, by ensuring your ride, you fulfil the government mandate, after which you can ride legally on the public roads.
Vehicle registration - We don’t need to tell you the importance of vehicle registration at the LTO. However, it can only be done after getting your vehicle insured, as it is an essential requirement for the process. Here you will also get the vehicle OR and CR, which again are essential documents that prove useful for several purposes.
Financial protection - While we have stressed enough the financial protection aspect of insurance, it is something that really adds weight to this deal. Imagine getting involved in an accident and having no need to worry about any sort of expense, as all that is already taken off by the insurance company.
Source of calm - Having car insurance in hand offers immense peace of mind to the rider. As they can now move around freely, knowing that if something bad/unfortunate happens, they are taken care of.
Protection against theft, vandalism, natural disaster, & mess that’s not your fault - It doesn’t matter if your motorcycle gets hit by a flood, typhoon, earthquake, gets attacked by rioters, or is stolen; comprehensive car insurance will offer you the required coverage.
Roadside assistance & towing - Many insurance providers offer 24/7 roadside assistance, wherein with just a call, you’ll be allotted a tow truck or professional expert.
Saves you money - To keep your motorcycle insurance active, you are only required to pay a few hundred pesos annually. This amount, aka premium, is nothing compared to the financial assistance you’ll get in case of an accident or collision.
Easy resale - Motorcycle insurance pays off in many ways, one is making vehicle resale easy. You see, buyers usually prefer vehicles with proper documents and insurance.
Top motorcycle insurance providers
Some of the well-known names in the business you can consider are -
- Oona Insurance Philippines
- Malayan Insurance with MotoOne Motorcycle Insurance
- Metropolitan Insurance Company
- SGI Philippines General Insurance
- FPG Insurance
Photo from FreepikHow much does Motorcycle insurance cost?
There’s no specific answer to this question, as the cost of motorcycle insurance varies with the provider. However, for starters, it will be at least PHP 250.
Let us now have a look at factors influencing the cost of motorcycle insurance -
- Rider’s age, location, riding history & claim record
- Motorcycles’ make and model
Tips to choose the right insurance provider & policy
Are you shopping for motorcycle insurance? Here’s a list of a few things to consider -
- Check the insurance provider's reputation - take feedback, read customers review
- Make sure the claim process is swift
- Check policy inclusions and exclusions
- Do negotiate, ask for discounts
- Opt for providers with 24/7 customer service
- Check the availability of the repair shop
- Do inquire about deductibles
Bottom line
Insurance is a must in the Philippines, whether you are a new or experienced motorcycle rider. You have the option to either go with the mandatory CTPL or add Comprehensive Insurance, which is highly recommended and offers extra protection. The final decision should depend on your needs and the budget you have set aside for insurance.
Remember, an insurance provider is like a silent guardian that lets you ride freely, without any worry. So, make a smart choice, get insurance today.
FAQs
Why is motorcycle insurance compulsory in the Philippines?
The government has made motorcycle insurance mandatory for riders’ own financial protection. The CTPL insurance covers the cost of injuries or damage caused to a third party by the insured car.
What are the benefits of comprehensive insurance?
It has several benefits, including coverage of the repair or replacement cost, along with financial protection in case of car theft, fire, vandalism, damage due to natural disaster, and third-party liability.
Name some of the top insurance providers in the Philippines.
Malayan Insurance, Etiqa, Prudential Guarantee and Assurance, Inc., Oona Insurance, SGI Car Insurance, Standard Insurance, Pioneer Insurance, and FPG Insurance are some of the leading names in the insurance sector.
What factors determine the cost of motorcycle insurance?
Several factors contribute to motorcycle insurance premiums, including the rider’s location, driving record, type of coverage, and age.
