types of car insurance

When buying a new or even a used vehicle, having car insurance is one of the things that you should invest in. It helps you in the event of an accident when it comes to your car’s repairs and may even cover damage caused by non-accident-related events. However, there are instances where your car insurance will not cover certain kinds of repairs. Below is a quick overview of what insurance types will cover and which ones you should go after. 

car accident

The basic role of car insurance is to cover the cost of damage or repairs when you get into an accident. However, regular car insurance does not protect your vehicle from any normal wear and tear. This means that the insurance agency will not release any money to your if you want it repaired under these circumstances. The insurance company will only pay for your repairs when it is part of the insurance policy. That being said, here is a quick list of car insurance types and what they will cover.

comprehensive insurance

Comprehensive insurance is one of the more popular options available in the market. It covers damage that is not related to a collision. It covers instances where your vehicle may get damaged from certain events such as a fire, falling objects, certain natural disasters, and even vandalism. Other examples also include theft, hail, glass damage, and animal damage. If you are worried about your vehicle make sure to check your insurance policy to see and understand what it exactly covers. This is the best kind of insurance you want to get if you just went general coverage for your vehicle. Getting coverage for your entire car will require specific add-ons, make sure to check with your insurance provider to see what options they have. Some of these insurance types will come bundled together with one another, so keep that in mind when choosing an insurance package or policy. 

collision protection insurance

This is the type of insurance you want to go for when you want complete coverage of your vehicle in the event of a crash or accident. This is ideal for those who want to have their vehicle protected in the event of an accident. Make sure to read your insurance policy as there might be a limit on what the car insurance will cover.

medical payments car insurance

Another insurance type that you should consider getting is one that covers Medical Payments. This ensures that your, your passengers, or family members riding with you will be covered in the event of an accident. The covered costs of the policy will differ from company to company, however, these will typically encompass hospital visits, surgeries, X-rays, and other medical-related expenses.

personal injury protection

Personal Injury Protection is another kind of car-related insurance in the Philippines. While it can be considered uncommon as not many companies may offer it, it’s still something worth considering as it comes with many benefits. It works in a similar way to the medical payments insurance policy as it also deals with medical-related expenses, however, it differs by also covering other expenses that have happened because of your injuries. Examples of these are child care expenses and lost income. 

car breakdown

Mechanical breakdown insurance (MBI) is the go-to insurance policy if you want some of the basic repairs of your vehicle to be covered by insurance. This will help save you some money down the line in terms of maintenance costs, however, there are a couple of specifics that you need to consider. 

One of the things to consider is that MBI is uncommon and as such not all insurance companies will be able to offer it to you. It also favors much newer vehicles that are below a certain mileage amount. The coverage itself is specific and is similar to that of an extended warranty.

This type of insurance does not cover the replacement of filters, tires, sparkplugs, brake pads, or your vehicle’s fluids. It does, however, cover the following:

  • Your vehicle’s drive train

  • Engine

  • Transmission

  • Brakes

  • Power system

  • Steering

  • Air conditioning

  • Fuel system

The coverage for this kind of insurance typically ends when either your vehicle hits a certain age or if you exceed a certain amount of miles. This is ideal if you want some coverage for your vehicle with regards to the repair of regular wear and tear.

What are the limits of MBI?

When it comes to this kind of car insurance there are limits on how you can make a claim. Make sure that you read your policy thoroughly to understand its scope and limitations. However, here are a couple of things you can expect from the policy in terms of its limitations.

  • Repairs done on your vehicle will be done by an approved auto repair shop.

  • You still have to pay a deductible before the insurance kicks in and pays the remaining amount.

  • It doesn’t include basic maintenance unless stipulated. 

types of car insurance

If you want protection from non-car-crash-related things then the best option to go with is comprehensive insurance. This gives your vehicle a general layer of protection from things that may otherwise damage it while it is stationary, it’s ideal for those who park their vehicles outside. 

If you want protection from car crashes or accidents then the collision type of car insurance is for you. While you will still have to pay a deductible amount, it will still be a fraction of the total repair that will be done to your vehicle. However, keep in mind that there is a ceiling when it comes to how much the car insurance company will cover in terms of repairs or damages. Nevertheless, it’s still a great kind of insurance to have as it can save you from costly repairs later on. 

If, however, you have a new car and want something that can reduce the amount you need to pay for specific repairs that are included by normal wear and tear, then you can go with mechanical breakdown insurance. Take note, however, that this insurance kind is very specific in its coverage and only favors newer vehicles. With that in mind, it’s like having an extended warranty for your vehicle which is still helpful in the event that something breaks. 

If you want to protect yourself and the passengers of your vehicle in the event of a crash then you can go with medical payments insurance. This handles all the medical expenses you might encounter after an accident has happened. However, make sure to read the policy as it only may cover up to a certain amount. That being said, it’s another layer of protection for you and your passengers.

If you want a more comprehensive version of the medical payments insurance type, you can choose to go with Personal Injury Protection. This works in the same way as the previous type but covers expenses incurred because of your injuries. It’s another great all-rounder to have in terms of protecting your car and your passengers. 

All of these are viable options if you want your vehicle as well as its passengers to be protected in the event of a crash. These will not only help you with your possible medical expenses but also with the repair costs of your vehicle. Make sure to read up on each insurance policy that your chosen company has and see which one best fits your needs and your budget.

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