What Type of Insurance Provides Coverage for Damages You Cause to Other Persons?

A Guide to Car Insurance in the Philippines

What is Machine Insurance & how does it work in the Philippines?

Motorcar insurance is first of all required by police force earlier yous are allowed to bulldoze your vehicle on a public road. Secondly your car insurance is for your financial protection when you accept amercement to your car or cause damage to another vehicle. The insurance policy is a financial contract betwixt yourself and the insurance provider, shielding y'all from major financial loss.

The amount of protection yous go from your auto insurance policy is adamant by the yearly premium that you lot pay and therefore the options included in your policy. At a minimum it is mandated that all vehicle owners become Compulsory Third Party Liability Insurance (CTPL), which covers death and injury of third parties but minimally covers the driver or it'south passengers. Almost vehicle owners are looking for further protection and opt for comprehensive insurance, which compensates the policyholder for financial losses due to concrete damage, actual injury resulting from vehicle collision, theft, fire, or any damage that may arise from incidents in a vehicle.

A responsible vehicle owner should protect themselves from vehicle repair costs, hospitalization fees, and assistance protect other vehicle owners.

Belongings – such equally damage to or theft of your automobile
Liability – your legal responsibility to others for bodily injury or property impairment
Medical – the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses

Why practise I need car insurance?

If you don't take insurance and you lot crash into a vehicle and it is your fault then not but are you breaking the law but yous will need to pay amercement for your own vehicle and the repair costs on the vehicle you damaged, which could hands price over ₱100,000. If you had comprehensive car insurance information technology would pay for all damages, thus protecting your pocket.

If your motorcar is still under loan and not fully owned, then it is mandated that you become comprehensive car insurance until information technology is fully paid, which at this point you lot could choose to opt for CTPL just.

Generally the primary reasons why you should have comprehensive car insurance are;

Covers the price of repairs or total write-off of vehicle
Provides medical assistance costs for you lot and your passengers
Helps to get your car repaired quicker and dorsum on the route, and sometimes provides a temporary car, whilst yous wait for your car repairs to be completed.
Provides emergency services like ambulance and roadside assistance.
Assists you with legal proceedings with a third party case
Additional perks and benefits

Common features of a auto insurance policy

Property Damage Protection
If you get into an accident and you are responsible, then your insurance policy will financially protect you if you take holding damage coverage. Specifically this will cover other people'due south machine repairs, property damage and other non-human damages. If a case was filed against y'all, so legal fees would also be covered.
Bodily Injury Coverage
This office of your insurance coverage will protect you financially if y'all hit another person when driving your car. Specifically this will encompass medical and hospitalization fees of the other person injured, as well equally lost wages, emotional distress damages and any legal fees that may occur.
Personal Injury coverage / Auto personal blow
This is for the fiscal protection of passengers in your car and yourself. Personal injury coverage will financially assist in medical and hospitalization fees for handling that maybe needed.
Comprehensive Coverage
Well-nigh of the fourth dimension information technology won't exist your fault, and is beyond your control. Comprehensive coverage will financially protect you lot confronting malicious harm, theft, vandalism, burn, riots and other non-natural events that tin can damage your vehicle.
Acts of God Coverage
Also known as 'Acts of Nature' is an bachelor option to add to your insurance, which financially covers you if auto damage occurs due to flooding, typhoons, earthquakes and other such natural disasters. Equally the Philippines is prone to natural disasters, this choice is commonly a sound investment to add together to your car insurance policy.
Compulsory Third Party Liability (CTPL)
This is mandated by the LTO upon purchasing a new vehicle or renewing your car registration. CTPL insurance provides death indemnity, bodily injury, and permanent disablement to 3rd parties involved in an blow. However this blazon of insurance does not provide coverage for vehicle owners or passengers, so if yous purchase but CTPL, you are leaving yourself and your passengers open up to financial risk, and peradventure non being able to go the proper medical attending if an accident occurred.

What are the different types of car insurance?

Before discussing the different types of Insurance policies available it is important to empathise the post-obit terms to empathise who the policy is giving protection too and who covers the fiscal costs.

Offset Political party - The owner of the vehicle, who has purchase the insurance policy
Second Political party - The insurance company providing the policy to the first party
Third Party - Whatever party/person involved in an accident with the first political party and is making a merits against the offset political party.

In that location are currently 3 main levels of motorcar insurance that you can get in the Philippines, all with pretty big differences. Meet below;

Comprehensive Insurance with Acts of God - This is the most protected comprehensive insurance y'all can become, not simply does it encompass you for third parties accidents, but also yourself and your passengers. You lot can even file a claim if you damage the motorcar yourself. With acts of nature, you also get coverage for damage caused by natural disasters.
Comprehensive Insurance without Acts of God - As acts of nature is optional and non required you can get comprehensive insurance, but if your machine is damaged by flooding, typhoons or an earthquake you will non be covered past your insurance.
Compulsory Third Party Liability - This type of insurance only covers the tertiary party people that were involved in an accident with you, it does non comprehend you for vehicle damage or bodily injury to yourself or passengers.

Comprehensive Insurance vs CTPL Insurance

Coverage	Voluntary Third Party Liability	Comprehensive without AON	Comprehensive with AON
CTPL	Optional	Optional	Optional
Excess Liability: Bodily Injury
Excess Liability: Property Damage
Passenger Personal Accident
Own Damage/loss
Theft
Strikes, riots, civil commotion
Acts of Nature
Benefits
Roadside Assistance
Towing Service
Ambulance Service
Fuel Delivery
Tire Replacement
Battery Jumpstart
Legal Assistance
24/7 Client care
Loss of use - Temporary use of vehicle

What are the pros & cons?

	Financial protection against damage of vehicle and bodily damage of yourself, passengers and third parties, depending on the type of insurance.
	Peace of mind that your vehicle, passengers and others on the road are protected.
	Saves you money from potentially large repair and medical costs.
	Insurers handle legal and paperwork, providing expertise and saving you time.

	Well it's non really a con, but yes you do accept to pay an almanac insurance premium
	In that location are deductibles before yous start using your insurance to encompass medical expenses for case, only yet much cheaper than potentially paying for the whole medical neb yourself.
	Don't expect all comprehensive insurance policies to be the same, they won't all cover everything, make certain you lot clearly understand what is and is not included, then that there are no surprises downwards the route.
	Yes it's true yous might pay the yearly premium and never use your insurance, merely that is a skillful problem to have.

What are the car insurance add together-ons that you should consider?

Some typical advertizement-ons to your insurance policies are commonly increases in financial protection or increased benefits, beneath are some common examples.

Voluntary Third Political party Liability - This coverage protects for indemnities beyond the limits set forth under the CTPL coverage.

Personal Accident Insurance - Financially protects the driver and passengers against bodily injury or decease if an accident occurs.

Roadside Aid - Is usually an optional added service, which provides peace of heed if you breakdown or need a towing service.

Acts of Nature - Provides fiscal protection if your car was to be damaged by typhoons, earthquakes, flooding, volcanic eruptions or other similar natural disasters.

Loss of apply - If your vehicle is under repair you can usually borrow a vehicle for upto ii weeks, whilst your auto is not bachelor to use.

How to go CTPL insurance?

Getting your CTPL is like shooting fish in a barrel and cheap, all you lot accept to do is become online and purchase from an insurance provider. Costs are regulated and standardized past the insurance commission. Y'all volition demand to upload the following documents;

Original vehicle receipt (OR)
Certificate of Registration (CR)
Drivers License
Ane other government ID

Once y'all accept received your policy, commonly through email, y'all volition print these documents out and upon registration y'all will present these to the LTO for proof of CTPL purchase.

Cost of CTPL

Vehicle Nomenclature	Premium Cost (Inclusive of Tax)
Private machine including private jeeps and utility vehicles	₱560
Light or medium trucks, not over 3,930 kg	₱610
Heavy Trucks & Private Busses over iii,930 kg	₱i,200
AC & Tourist Cars	₱740
Taxi, PUJ, Mini bus	₱one,100
PUB & Tourist Omnibus	₱1,450

Motorcycles, Tricycles & Trailers - ₱250 *put into table

There is also a vehicle identification fee of ₱90.40 on top of the CTPL premium. So for a private car the toll would be ₱560 + ₱ninety.xl = ₱650.40

Your CTPL policy will cover up to ₱100,000 in third party-liability equally well as the following schedule of indemnities for bodily injury and/or death.

How to get Comprehensive Insurance?

The documents y'all demand for comprehensive insurance are the same as for your CTPL, but if you take already purchased your CTPL, you don't accept to get the comprehensive insurance from the same provider, yous can shop around and search for the policy that all-time suits your needs and wallet. In one case again you lot can research online and purchase your policy online, no demand for telephone calls or in person meetings.

Cost of Comprehensive insurance

The usual range for comprehensive insurance for cars between ₱750,000 and ₱2m is usually between ₱xv,000 - ₱l,000 per year, depending on the auto brand and model and the type of comprehensive insurance policy and ad-ons that you opt for.

Common Mistakes When Getting Car Insurance

1. Non researching online: If you don't research different types of insurance policy inclusions and their prices, yous are setting yourself up to overpay on your insurance premium past ₱5,000 - ₱10,000. Enquiry transparent pricing online and request for at least 2-3 quotes to see the departure.
2. Not making payment online: Making your payment online is instantaneous and you get to choose how you pay, whether with cash from your savings account or by using a credit card, and in some cases insurance providers will allow you to pay monthly via direct debit, helping you spread the payments across 1 twelvemonth, rather than paying the full amount upfront. With digital policies, it's also much easier to update and add on boosted coverage if you want to in the hereafter.
three. Simply buying the cheapest coverage: A common mistake is for car owners to go for the cheapest insurance coverage, which is basically playing with burn down. Imagine if y'all make that i fault and hit an expensive car for case, leaving y'all with a nib for ₱500,000, which doesn't await similar a cheap insurance premium anymore.
4. Not being transparent with the insurance provider: It's really not worth giving a few white lies to get a lower premium equally the insurance provider will probably find out through diverse background checks, and either hitting y'all with a higher premium down the line or when information technology comes to claiming, reduce your financial protection or void your policy altogether. On the upside if your driving history is good so total transparency can lead to lower premium rates.
5. Not opting for additional coverage: Essentials options that you should always consider in the Philippines are Acts of Nature and Roadside Assistance. Make sure you lot read what is in your standard comprehensive coverage and what boosted items yous want. Again this is usually laid out best when purchasing online, and helps you with non missing out on essential insurance advertising-on options.

Tin you insure erstwhile 2nd hand cars?

It is possible to insure second hand cars, but in that location are a few guidelines to consider;

Most insurance companies only insure vehicles upwards to 10 years one-time, anything older will in most cases non be insurable, or come with a college premium.
Whatever car which costs more than to repair than the actual cost of the auto is also likely non to get insured. In the case of sometime cars, parts may not be readily available, and the expense to import parts is also expensive for the insurance company.
If you have a desirable archetype or vintage auto, then this volition come with a higher insurance premium, and you may need specialist insurance for this kind of vehicle.

How to file a car insurance claim?

If you are in an accident these are the steps y'all should accept to enable your insurance to take care of the financial implications;

Photographs of the incident, especially damaged parts of cars involved.
Set up Documents - OR, CR, Insurance Policy and Drivers License
It's not always essential merely sometimes you volition need a police force written report and or sketch.
Contact information of the third party
There maybe other documents if hospitalization or decease occurs, only the above procedures are what you lot need to get started with a merits.

How to renew your automobile insurance?

First of all you need to know your insurance renewal schedule and two months beforehand, beginning researching other possible options. Services like AutoDeal Insurance will automatically transport you renewal quotes from which you can cull from. Research online and go some more quotes, and in one case you have those quotes y'all can e'er go back to your electric current provider and see if they tin friction match or crush it, normally they can.

Mutual Insurance Terms

Mutual Term	Caption
1st Political party	Owner of the Insurance Policy
2nd Party	Insurance Policy Provider
3rd Party	Other party involved in the accident
At Fault	Persons who were at fault in the accident
Merits	Policy owner requesting for amercement to exist covered by the insurance provider
Deductible	A certain corporeality you need to pay before the insurance provider pays all other expenses.
Fair Market Value	The estimated value of your auto in relation to it's Make, model and variant
Premium	This is the overall toll of your insurance policy for the duration of i year
Policy Schedule	These are the total details of your policy - Coverage, cost and outset & expiration date.

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Source: https://www.autodeal.com.ph/car-insurance