What Are The Different Types Of Car Insurance Philippines

What Are The Different Types Of Car Insurance Philippines

Are you curious about the various forms of car insurance Philippines? Which one is most appropriate for your requirements? Check out this post to learn more!

Any vehicle owner is responsible for purchasing auto insurance to comply with the law and protect themselves and those around them. Hence, it is very significant to select the type of insurance that is most appropriate for you. In this post, we would love to provide you with a specific guide on car insurance Philippines options and their set of benefits.

Standard Car Insurance Philippines

Standard Car Insurance Philippines

You understand that you must buy auto insurance, but are you sure about the types of standard car insurance Philippines? Understanding each type of insurance will help you make the right choice, such as:

Liability Coverage

Liability insurance is required as a legal requirement to drive a car in the Philippines. Specifically, this type of insurance can help compensate for injury and property damage to the person in the accident (caused by you) for which you are legally responsible.

Collision Insurance

This insurance can compensate for the vehicle you crash and help replace or repair a covered vehicle.

Comprehensive Insurance

In the case of an accident involving another vehicle, comprehensive insurance is in need and vital. It helps you cover damage to your car due to incidents outside of a collision, including vandalism or an accident with animals and weather accidents.

However, how much is the participation fee in car insurance in the Philippines? Enrollment for comprehensive residential car insurance requires a deduction, or entrance fee, to facilitate handling. This fee is typically 0.5 to 1% of the total market value of the car covered.

Also, the fee is a safeguard against cases in which the policyholder abuses the policy by claiming minor damages and preventing fraud claims.

Underinsured Motorist Insurance

Many people choose minimum liability insurance as a way to save money. However, this may not provide enough coverage for you as underinsured motorist insurance is responsible for protecting you in the event of an accident, for which regular insurance is not sufficient to cover the cost.

Medical Payments Coverage

Generally, any accident results in an expensive amount of medical expenses, and Medical Payments Coverage will be responsible for paying this regardless of who is at fault.

Personal Injury Protection Insurance

Personal injury insurance can cover up to 80% of covered accidental medical and other expenses subject to policy limitations. Therefore, this is also one of the essential insurance for drivers.

Gap Insurance

Cars are losing value more and more; their prices will drop significantly within a few years. As a result, the auto insurance payout may not be enough to cover the cost of the loan. Gap insurance can help people pay off a loan to buy a car in the event of a theft.

Which Car Insurance Do You Need?

Towing And Labor Insurance

Besides car insurance and labor insurance, towing insurance also plays an essential role in reimbursing the cost of towing and labor expenses to repair your vehicle.

Rental Reimbursement Insurance

After an accident, you immediately realize how important it is to buy car insurance. Rental reimbursement insurance is essential because it helps pay rent if your car cannot drive after a serious accident.

Classic Car Insurance

This type of insurance is only for collectors of vintage and classic cars. If you don’t have auto insurance yet, sign up now. In this way, you won’t need to worry much about accidents arising on the road.

Why Do You Need Car Insurance?

In the Philippines, if you’re the one who crashes another vehicle and does not have auto insurance. You will have to pay money on fixing your car and the compensation repair costs for the other vehicle; the cost could be more than 100,000 PHP.

Meanwhile, if you have comprehensive car insurance, it will cover the entire damage on your behalf. Be mindful that if your vehicle is loaned and not wholly-owned, you are required to purchase comprehensive car insurance until the car is fully paid for and belongs to you officially.

The following are the most common reasons why you should have comprehensive car insurance:

  • Covers the risk of maintenance or repair of the vehicle.
  • Covers the price of medical assistance for you and your passengers.
  • Helps you get your car fixed and provide you with a temporary vehicle while you’re waiting for your car to be fixed.
  • Include emergency services such as ambulances and roadside assistance.
  • Assists you with legal matters involving a third party.
  • Extra perks and advantages.

Check more articles of Philippines Law in our Feature Category

How Car Insurance Works In Philippines

According to the traffic laws in the Philippines, it is a requirement for you to buy auto insurance once you participate in traffic. Moreover, it is a way to protect your finances when you damage your vehicle and another car.

So what is an insurance policy? This is a financial contract between your insurance provider and you to protect you against significant financial loss. The amount of protection you receive from an auto insurance policy is determined by the annual premium you paid and some policy options (as agreed by you and your provider).

Hence, all vehicle owners must purchase Compulsory Third Party Liability Insurance (CTPL), injury and death insurance.

What is the best car insurance Philippines? Most vehicle owners will choose comprehensive insurance as it compensates them for all financial loss resulting from physical damage, injury from collision, fire, theft, or any other damaging incident.

Vehicle owners should be responsible for protecting themselves from hospital charges, vehicle repair costs and for helping to preserve other vehicle owners, in particular:

  • Property loss – damaged or stolen.
  • Liability – your liability to others for property damage or bodily injury in an accident caused by you.
  • Medical expenses – expenses for trauma treatment and rehabilitation.

Check more articles of Car price list Philippines

How To Claim Insurance For Car Accident Philippines?

How To Claim Insurance For A Car Accident In The Philippines

There are three steps as following:

Call Medical Assistance And Police

Call for an ambulance and police assistance to check the injuries and damage. Remember to take a photo of your car and the vehicle hitting you (but with damage, license plate)

Record The Event Of The Problem

Take photos of the damaged vehicle, license plates of the vehicles involved, and all permits.

Collect Related Documents

  • Names, contact details, and addresses of involved people, the registered vehicle owner, and the witnesses.
  • Date, time, and place of the accident.
  • Vehicle model and license plate number of the vehicle involved in the accident.
  • Driver’s license
  • Details of the participating driver’s insurance policy

You must also go to the police station to file a report to protect you from lawsuits. Additionally, it is very important to file your car accident insurance claim.

Our Verdicts

So you have learned about all kinds of car insurance Philippines, and how to claim insurance, cost, and the importance of buying insurance. You should consider and buy yourself the best insurance for you to protect yourself, your property, and others.

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