What does a typical car insurance policy in the Philippines cover?

Updated: August 5, 2024

Car insurance in the Philippines is similar to car insurance policies in other countries, but it is crucial to understand the specific coverage options and requirements locally. This article will explore what a typical car insurance policy covers, in which some terms might be overlooked by a lot of people.

Compulsory third-party liability insurance, or CTPL, is required by law in the Philippines for all registered vehicles. This coverage provides financial protection against injuries or death to third parties, including passengers, pedestrians, and other drivers, in the event of an accident caused by the insured vehicle. CTPL insurance is typically included in the annual registration fees paid to the Land Transportation Office (LTO).

Own damage coverage is optional but highly recommended. This coverage protects against damage or loss to the insured vehicle due to accidents, theft, or fire. This coverage may be subject to a deductible, which is the amount you pay out of pocket before your insurance coverage kicks in. While CTPL (Compulsory Third Party Liability) insurance protects you from paying out of pocket for damage to another person's car, Own Damage Coverage protects you from the high financial burden of damage to your car.

Do you live in a flood-prone area? Is your garage in danger of being submerged during a super typhoon? Insurance policies with this coverage will save you lots of money in case your car gets hit by Mother Nature’s full strength.

Acts of God or acts of nature coverage is another optional coverage that protects against damage or loss to the insured vehicle due to natural disasters such as typhoons, earthquakes, or floods. This coverage may also include landslides, volcanic eruptions, and other related events. Not all car insurance policies in the Philippines offer this type of coverage, so it is important to check with your insurance provider.

Personal accident insurance is an optional coverage that protects the driver and passengers of the insured vehicle in the event of an accident. This coverage includes medical expenses, disability benefits, and accidental death benefits. Some car insurance policies in the Philippines offer a fixed amount of coverage for each passenger, while others offer a lump sum benefit for all passengers.

Acts of malicious mischief coverage is another optional coverage that protects against intentional damage to the insured vehicle by third parties. This may include vandalism, keying, or other malicious acts. This coverage may also include damage caused by riots, strikes, or civil commotion. Consider investing in insurance policies with this coverage if you live in a high-crime rate area or if you feel like your neighbors hate you.

Roadside assistance is an optional coverage that provides help if your vehicle breaks down on the road. This may include services like towing, fuel delivery, and jump-starts. Some car insurance policies in the Philippines also offer emergency assistance services, such as ambulance services and emergency medical evacuation.

Loss of use coverage is an optional coverage that provides reimbursement for the cost of renting a replacement vehicle while your insured vehicle is being repaired due to an accident, theft, or other covered event. This coverage may be subject to a daily limit and a maximum total amount.

It is important to note that the specific coverage and limits of car insurance policies in the Philippines may vary depending on the insurance provider and the policy options chosen by the insured. It is also essential to carefully review your policy and consult with your insurance agent to ensure that you have the coverage you need to protect yourself and your vehicle.

It is also vital to choose the suitable coverage options and limits that fit your needs and budget and to review your policy regularly to ensure that you are adequately protected.

Now that you know what types of insurance coverage are available to you, you can start shopping for your new ride with more confidence. Check out the AutoDeal Car Guide for a comprehensive list of available vehicles in the Philippines. You can also buy car insurance for your new ride using the Car Insurance tab on AutoDeal. Try it out; it's quick, easy, and most importantly, free.