Different kinds of car insurance

You want or need car insurance, but what are the types? Here’s a quick guide.

Different kinds of car insurance

To avoid any head-scratching following a car accident, insurance is the best way to get yourself out of a financial pinch in a jiffy. however, what do you get? There are quite a few options out in the market from different service providers. Car insurance may be bundled with your vehicle right after you purchase it, or can be availed of after the fact. 

So what do you get? What are the different types that you need to take note of? Well here’s a list of the most common car insurance products and a gist of their corresponding terms and benefits. 

Compulsory Third Party Liability (CTPL/CTP)

The reason why this type of insurance is compulsory or required is that it protects the affected party in the event of an accident. While the protection affects the third party, the policy does not cover the repairs and damages that are incurred by the affecting party. 

Simply put, if you hit something, or someone, the insurance policy may be used to help or totally cover the costs. However, the damage on your end won’t be covered. 

The benefit is that the affected party will get the benefit of your insurance provider. With this policy, you can also officially register your vehicle with the LTO, which means that your car is deemed road-worthy. 

Comprehensive Insurance

Comprehensive insurance will protect you and the affected party in the event of an accident, however, this kind of insurance policy will help you cover the repair costs of your car even if no other party was involved or no other party was identified—given the right additions to the policy. 

The benefit is that you get to protect your car and your wallet at the same time. The con is that it does cost more to get insurance like this, but this type of universally recommended because of the scope of the policy. 

Coverage items under comprehensive insurance 

Comprehensive covers pretty much everything—given the right add ons and policy. However, you do need to remember what are the events and the situations that you will need to prepare and account for. 

  • Own Damage/Theft 

This is an item that is commonly included in comprehensive insurance policies. It will cover car damage, car loss, and damge/loss of declared accessories and spare parts due to robbery, vandalism, or fire—otherwise known as arson. 

  • Acts of Nature/Acts of God 

Natural disasters or other damage caused by weather, trees, rocks, earthquakes, or animals will be covered. Whether your claim is valid will depend on your insurance provider and their assessment, however. 

  • Personal Accident 

This will cover the injury, disablement, or death, and provide financial aid to you and your passengers in the event of an accident.