Which Car Insurance is Best For Me?

No matter how careful a driver you are, accidents are part of life on the road. Car insurance is a must, given the high occurrence and the traffic conditions in the Philippines.

Peace of mind while you’re on the road is priceless. Get to know these types of car insurance available in the country and choose the best coverage that your budget can buy.

  • Compulsory Third-Party Liability (CTPL) Insurance

As a car owner, you are required by law to have at least a Compulsory Third-Party Liability (CTPL) Insurance (CTPL) insurance. The Land Transportation Office (LTO) requires you to already have one when you register your car.

This mandatory insurance covers injuries that you, as a driver, may cause to other people in case of accidents. This also includes your passengers. However, it doesn’t cover the cost of damages to your vehicle. If you hit another vehicle, the insurance will not cover the damage to the other car.

Getting started with car insurance just a matter of looking up options for comprehensive car insurance online. The total amount you have to pay is calculated by deducting the amount of claim from the deductible of your policy.

Coverage:  PHP 10,000 to PHP 100,000, depending on the policy

Price range: LTO requires a minimum of PHP 950.00. Maximum price is PHP 2,000

  • Third-Party Property Damage Insurance

This covers the damage to the other cars involved in the accident, as well as other properties (if there any). However, it doesn’t provide insurance for your vehicle.

This type of insurance is suitable for second-hand cars with lower value than the fair market price. It’s the best insurance for those instances in which it’s more affordable to replace your car that having it fixed.

The price range and coverage will depend on the insurance company.

  • Third-Party Fire and Theft Insurance

As the name implies, this insurance type covers damage caused by fire and theft. Claiming requires you to provide your registration certificate, official receipt of your vehicle, police report, and perhaps a damage assessment form.

The price range and coverage will depend on the insurance company.

  • Comprehensive Car Insurance

This provides full coverage compared to the ones above. This also includes benefits of the TPL and the fire and theft insurance. If you have a luxury car, this is the insurance you should get.

The price range and coverage will depend on the insurance company.

What should you consider when choosing the right policy?

Take note of factors such as your place of residence, your driving habits, the amount of coverage you need, and the track record of the insurance company. Your costs will increase if you are living in a flood-prone place or if you have a history of getting involved in road accidents. With the right negotiation, you can actually lower your auto insurance premium, but take note that the cheapest coverage or the biggest coverage is necessarily the best one for you.