Tips for Finding the best car insurance companies in the Philippines

Tips for Finding the best car insurance companies in the Philippines

So you purchased a brand new car and you are searching toward the days you may be driving it towards to your workplace or an important appointment (a summer vacation, perhaps). But, you might be missing out on something within your vision for the future.

Although hopefully you will not encounter one, accidents to happen. Thankfully, there are car insurance policies in the Philippines that may cover the charge during such unfortunate situation.

However, can you be sure that your car insurance provides the best policy, high quality and pricing which will meet your requirements?

Carmudi Philippines has compiled one of the most important hints when choosing a car insurance policy so that you can have peace of mind if you hit the road.

Four major types of car insurance

Compulsory Third-Party Liability (CTPL) Insurance

Car Insurance Companies

 

The law requires that each car owner should at least have Compulsory Third-Party Liability (CTPL) insurance. Also, it is one of the requirements that the Land Transportation Office (LTO) requires brand new vehicle owners to organize if they are registering their very own car. To make it simple, having this kind of insurance policy is mandatory.

CTPL covers injuries the driver (or car owner) has caused with other persons during an accident, including his or her passenger(s). It also protects your own personal injuries expenses however, not the damage to your car.

If you are involved in a collision along with another vehicle, CTPL will never cover the damage to the other vehicle. A term related to this kind of policy is the Voluntary Third Party Liability (VTPL)- Body Injury.

Price range: PhP 950.00 (minimum required by LTO) to PhP 2,000.00

Insurance coverage: PhP 9,999 to Php 100,000 (based on policy)

When calculating just how much you will need to pay, you usually deduct the claim amount from the policy’s deductible.

For example, the claim is PhP 8,000 and you have a deductible of PhP 2,500- your insurance will have to pay for the remaining PhP 5,000.

Third-Party Property Damage Insurance

Car Insurance Companies

This is actually the cheapest kind of insurance, with the exception of CTPL. Basically, it covers damage to a property (including other cars) in case your car ever becomes involved in an incident. This does not provide coverage to your vehicle.

Third Party Property Damage is normally used for second-hand vehicles that have a lower price than fair market price. When replacing your car will be cheaper compared with actually fixing the damage with it, this kind of insurance will be good for you.

For 3rd Party Liability insurance and the other 2 policies pointed out below, the price range and insurance coverage are evaluated by the insurance company. Generally, the cost of your insurance policy will depend on the fair market (or assessed) value of your car.

Malayan Insurance, for example, costs PhP 20,000 for coverage on a car that costs PhP 1,000,000.

Price range: Quote

Insurance coverage: Quote

Third-Party Fire and Theft Insurance

If you aren’t worried about ending up in a crash which will damage some other people’s property, you might want to apply for this kind of insurance policy.

Becasue it is name suggests, 3rd party fire and theft insurance covers the car when it is damaged by thieves or fire. Most car insurance companies also include the key benefits of third party property damage to this policy.

Whenever applying for claims with this kind of policy, you need to provide your car insurance company some pertinent documents such as a police report, a damage assessment form, a certificate of registration, a official receipt and some pictures.

Price range: Quote

Insurance coverage: Quote

Comprehensive Car Insurance

Comprehensive Car Insurance

This type of car insurance provides the most coverage out from the 4 major types of car insurance.

Comprehensive car insurance covers much more possible scenarios which may damage your car while keeping the benefits of either or both 3rd party Liability (TPL) and fire and theft insurance. This is certainly recommended for those who own luxury cars or owners who consider their car an investment.

Some insurance companies can provide additional clauses such as Acts of God or Acts of Nature– some examples are floods and earthquakes.

Others include addons such as your car being damaged whenever a riot erupts or even if your car is damaged because of an unexpected situation. Even the valuables within your car (during the accident) and the car and truck accessories you have installed are also insured.

Price range: Quote

Insurance coverage: Quote

Which type of car insurance is best for you?

Whenever choosing which car insurance you should get, you might 1st would like to have a look at various factors such as your residence (is it prone to flooding?), your driving behavior (have you been associated with a road accident before?), the track record of the insurance company (based on customer feedback) and just how much protection you really need to protect your livelihood (if it is a commercial vehicle) or investment.

The best way to do this is to actually speak to a few of the insurance companies in the Philippines.

Find different quotes from not just one or two, but as many as you can as well as compare what exactly they are offering.

Never jump immediately because they are offering the lowest priced policy or largest amount of coverage.

Read the policy thoroughly (especially the fine print) and when you know an attorney consult with him first.

Do note also that some insurance companies do not insure vehicles which are ten years of age or older. To know if you are dealing with a legitimate insurance provider have a look at when registered in the Insurance Commission of the Philippines.