If you have a car, it would be a smart decision to get a car insurance as well. You never know what will happen. Sometimes, even the most experienced and cautious driver meet an accident on the road. It may be due to another driver’s fault, but it’s worth having a car insurance that will help you, your car, or your passenger financially if the unexpected happen.
This year alone, my mother-in-law’s car has had 2 accidents. The first happened early in January this year. It was my sister-in-law who was driving the car when a fast motorcycle came approaching and accidentally slid on the road and hit the car. My SIL wasn’t hurt, but there was a dent on the side of the car, and the motorcycle rider, who was driving really fast without wearing a helmet and who happened to be teenager guy without a driver license, was badly hurt.
Good thing the incident was captured on the nearest CCTV. But even if it was clearly the teenager who was at fault, my sister was charged and was ordered to pay P5,000 for hospital expenses. She also paid around P5,000 to have the car repaired at the casa.
And just last week, my father-in-law, after buying something at the grocery store near our place, accidentally hit the back of another car at the parking area. It caused a small dent on the other car and he paid P4,000 for its repair, and another P3,000 for the repair of his car.
They had to pay all these expenses out of their own pockets because the car doesn’t have an insurance.
Car accidents can happen to anyone, at any time, and at any place.
And while car insurance cannot prevent accidents from happening, having it can protect you and your car when accidents occur.
In this article, we’ll tell you everything that you need to know about having a car insurance here in the Philippines including the following topics:
- What is a car insurance and why do you need it
- What are the different types of car insurance
- What are the things that you need to know before getting a car insurance
- Why I got my car insurance from MoneyMax
- How to Apply for Car Insurance and What are Requirements
- List of Car Insurance Companies and Providers in the Philippines
- List of Car Insurance Comparison Sites in the Philippines
- Tips on How to Get the Lowest Car Insurance Rate
- How to File a Car Insurance Claim in the Philippines
- What to do if your Car Insurance Claim is DENIED
What is a Car Insurance and Why do you need it?
A car insurance is a contract between you and the car insurance company that protects you against financial loss in the event of an accident, damage, or theft. A car insurance policy can help cover repairs to your car and medical costs in case you meet an accident.
In exchange for your paying a premium, the insurance company agrees to pay all or most of the costs associated with an accident or other damage as outlined in your policy.
So, instead of paying out of pocket for car accidents (like what happened to my sister-in-law and father-in-law), if you have a car insurance, it’s the insurance company who will take care of these expenses.
What are the different types of car insurance?
Here in the Philippines, there are 2 types of car insurance, CTPL and Compre.
- Compulsory Third Party Liability (CTPL)
- CTPL insurance is a basic and least expensive car insurance in the Philippines
- CPTL is required by the government when you register your vehicle with the Land Transportation Office (LTO)
- CTPL rates differ by length of coverage and type of vehicle. For one-year coverage, here are the rates of CTPL car insurance:
- Private Cars – P1,610
- Light to Medium Trucks – P1,750
- Heavy Trucks and Private Buses – P3,440
- ACs and Tourists Cars – P2,120
- Taxis, PUJs, and Mini Buses – P3,150
- PUBs and Tourist Buses – P4,150
- Motorcycles, Tricycles, and Trailers – P720
- Comprehensive Car Insurance or “Compre”
- Comprehensive car insurance provides more coverage than CTPL
- Comprehensive car insurance is not required by the government when you register your vehicle with LTO, however, if you’re paying your car via loan, your bank will require you to get comprehensive car insurance because they want to be assured that the car they’re paying for will be taken care of in the event of an accident.
- Comprehensive car insurance rates depend on the coverage, the type and age of the car or vehicle, and the condition of the car. Coverage may include the following:
- Own Damage/Theft
- Acts of Nature
- Personal Accident
- Property Damage or Voluntary Third Party Liability (VTPL)
- Comprehensive car insurance may give you options to add additional coverage or add-ons including:
- Legal Assistance
- Roadside Assistance
- Loss of Use
The maximum amount of coverage is determined by the value of the vehicle. The higher the car’s value is, the higher the maximum amount will be.
What are the things that you need to know before getting a car insurance?
Before you buy your car insurance, you must:
- Know the type of car insurance you need.
Like what we mentioned above, CPTL car insurance is required by the government when you register your vehicle with the Land Transportation Office (LTO), while you need a Comprehensive car insurance if you are paying your car via loan.
- Learn the coverage, add-ons, and privileges of the car insurance
In addition to the usual coverage like own damage, if your place is prone to flooding, you may also consider getting an insurance that provides coverage for acts of nature.
- Consider your budget
If you have a car, it is equally important that you have a car insurance. But let’s admit it. Not all vehicle owners can afford to buy a car insurance. Budget is an important factor to consider when buying a car insurance.
When we bought our car in 2016, it came with a free 1-year car insurance. After a year, I searched for different car insurance options and below are the rates from different insurance providers for the type of car that we have:
- P15,000 if we get the car insurance from the car dealer’s in-house provider
- P13,000 if we get it directly from the bank where we got our car loan from
- P11,500 if we get it from Oriental Car Assurance through MoneyMax
The coverage of the car insurance from these three providers were the same, so I ended buying our car insurance from MoneyMax simply because they offer the cheapest rate.
This year, I renewed our car insurance from the same provider through MoneyMax and we only paid P9,286. It’s cheaper this year because the car depreciates in value.
By the way, I chose Oriental Assurance Corp. after I read some good reviews about the company. Having a car insurance gives us peace of mind and thank God we have never used it since we got our car and hopefully we wouldn’t need to use it.
7 Reasons Why I Got my Car Insurance from MoneyMax
- MoneyMax gives at least 3 options of insurance providers based on our needs and the coverage we want.
- It’s easy to compare the options through MoneyMax’ website thus it’s easy to decide which one to get.
- MoneyMax offers the cheapest car insurance rates.
- MoneyMax’ representatives are persistent and helpful. Once you request for a quote on their website, expect that one of their representatives will get in touch soon and assist you until you made the decision on whether to get the car insurance from them or from another company.
- MoneyMax is very accessible. You can request a quote online. You can inquire via email or landline or even through SMS.
- MoneyMax offers easy payment options. Last year, I paid by issuing PDCs. This year, they have more options including credit card and they also allow installment payments at 0% interest which is easy on the pocket.
- MoneyMax now offers referral incentives. When you share your referral link to your friend or relative, and he/she ends up buying a car insurance from MoneyMax too, you will get P500 worth of Sodexho Gift Certificate from MoneyMax, which is good as cash and you can use it in various establishments.
And if you’re considering to get a car insurance, you may check out the options from MoneyMax through my Referral Link. I appreciate it! 🙂
How to Apply for Car Insurance and What are the Requirements
Once you have chosen the car insurance provider, follow these steps on how to apply for your car insurance.
1. Prepare the requirements including:
- Original vehicle receipt
- Certificate of Registration of your vehicle
- Your driver’s license
- Another valid government ID
2. Submit the requirements to your chosen car insurance provider. Depending on the company, you may submit these online or by going to their office personally.
3. Pay your premiums or car insurance payment depending on the payment option that you chose.
You will then receive your car insurance policy. Review it and if you have any questions, don’t hesitate to ask your insurance provider.
List of Car Insurance Companies and Providers in the Philippines
- AFP General Insurance
- BPI MS Car Insurance
- Charter Ping An Car Insurance
- Direct Link
- Federal Phoenix Car Insurance
- Fortune General
- FPG Insurance
- Liberty Car Insurance
- Malayan Insurance
- Mapfre Car Insurance
- Oriental Assurance Corporation
- Paramount Life and General Insurance Corporation
- Pioneer Car Insurance
- PNB GEN
- Prudential Car Insurance
- QBE Seaboard Insurance
- SGI Philippines
- Standard Car Insurance
- Travellers Insurance & Surety Corporation
- UCPB GEN
List of Car Insurance Comparison Sites in the Philippines
Tips on How to Get the Lowest Car Insurance Rate
- If you’re still planning to buy a car, always remember that the more expensive your car is, the more you’ll pay for your car insurance. So, choose the car and insurance that is within your budget.
- Invest in safety devices or features. For example, if you have a driver alarm or anti-theft device, you might get a discount when you get theft coverage.
- Drive safely and defensively. Good driving can be rewarded with reduced premiums, where as poor driving will usually result in more expensive premiums at renewals.
- Do an Annual Rate Check by getting quotes from different car insurance providers. You may also visit comparison sites like MoneyMax to know what company offers the cheapest rate.
- Pay your car insurance in full if you can afford it. Paying your premium in an annual lump sum or in full may reduce the car insurance average cost, as well as your car insurance deductible. Some insurance providers often charge you with additional fees if you choose to pay your premium on a monthly basis. I’m glad MoneyMax offers the same rate even if I paid it in 3 installment basis.
- Review All of Your Coverage. Buying more coverage might seem like an odd way to save, but the benefit comes if you have a costly claim, which can put your life’s savings at risk. If you have a membership with any establishment (example, Petron carholders) that provides free or inexpensive roadside assistance, then don’t add this to your coverage anymore if there’s an option.
- If possible, don’t just insure your car. Make sure you also have a life insurance and health to help you and your beneficiaries in case something happens.
How to File a Car Insurance Claim in the Philippines
If your car gets involved in an accident, the next thing to is to file for car insurance claim, but ONLY if you have a car insurance.
Assuming you have an active car insurance, here are the general steps on how to file a claim:
1. Report the incident to the police immediately.
As soon as you got involved in an accident or you discovered that your car was stolen, call the police immediately so that they can investigate and gather necessary information. Make sure you request for a police report because this is one of the requirements when filing a car insurance claim.