Owners of brand-new or used cars in the Philippines are required to have a Compulsory Third-Party Liability Insurance (CTPL) car insurance since it is mandated by Philippine law and the Insurance Code of the Philippines. Car insurance is a contract or a policy between you and the insurance company, which gives you security, protection, and financial assistance when your vehicle is involved in an accident or theft.

As such, without car insurance, you will be paying for all the damages and repairs should your car get involved in an accident or in an unfortunate event such as theft. Car insurance gives you peace of mind as well as financial protection if you damage another person’s car or injure a third party. Some car insurance policy also offers legal assistance, roadside assistance, use of another vehicle while your car is undergoing repairs, among others.

There are two types of car insurance policies you can avail of in the Philippines. Each type of insurance has its respective package options that cover a specific set of circumstances. As said earlier, Compulsory Third-Party Liability Insurance (CTPL) car insurance is mandated by Philippine law. The other insurance policy you can avail is the Comprehensive Insurance, which can include add-on package options such as Acts of God/Nature, Personal Accident, Medical Reimbursement, Riot, Upgrade, Loss of Use, Roadside service, etc.

Compulsory Third-Party Liability (CTPL) Insurance

Compulsory Third Party Liability Insurance, or CTPL in insurance jargon, is required by the Philippine government as a basic car insurance that all vehicle owners should get upon purchasing a new vehicle or when renewing your car registration. This is the basic and least expensive car insurance in the Philippines. The coverage of the CTPL is up to Php 100,000 and it is only applicable to the third party. This means that CTPL will only cover the involved third party in the event of an accident. It does not cover the damage to your vehicle or any bodily injury you and your passengers incurred in the event of an accident.

Comprehensive Car Insurance

Comprehensive Car Insurance, or Compre in insurance-speak, is a type of insurance that has a more comprehensive coverage as compared to CTPL. This type of insurance is not mandatory in the Philippines but it is advisable to avail comprehensive car insurance in order to have better coverage and protection. Compre insurance protects you, your vehicle, and your passengers from several classifications of road-related risks and hazards. As such, this type of insurance will cover car repairs, as well as insuring you in the damages and liabilities in the event of an accident or theft. Comprehensive car insurance can also include add-on package options such as Acts of God/Nature, Personal Accident, Medical Reimbursement, Riot, Upgrade, Loss of Use, Roadside service, etc.

Here in the Philippines, the rates or premiums of Compulsory Third Party Liability Insurance, or CTPL, are regulated by the Insurance Commission. This means that CTPL rates or premiums are the same across all cars, depending on vehicle classification.

According to the Insurance Commission, CTPL for Private Vehicles is priced at Php 650.40, while Light and Medium Trucks is at Php 700.40, Heavy Trucks (more than 3,930 kg) is Php 1,290.40, and Motorcycles at Php 340.40.

Comprehensive car insurance is not mandatory in the Philippines. But, this type of insurance offers better coverage and protection. There are no fixed rates when it comes to this kind of car insurance. Usually, insurance companies will be the ones to set the rate of your policy, which depends on the current state of your vehicle. To give you an idea, here are some of the factors that will determine the price of your comprehensive car insurance: Car Model, Car Brand, Model Year, Condition of the car, Accessories equipped in the car, Safety Features of the car, and How old/new is your car.

Getting your Compulsory Third Party Liability (CTPL) Insurance is fairly easy. All you need to do is inquire to your preferred insurance provider and present the following documents: Original Vehicle Receipt, Certificate of Registration, Driver’s License, and one Government ID.

Getting your Comprehensive Car Insurance is basically similar to how to get a Compulsory Third Party Liability (CTPL) insurance. You need to present the same documents and choose your preferred insurance provider. Take note that you can choose a different insurance company for your Comprehensive Car Insurance since it is not mandated that your Comprehensive Insurance is from the same company as your CTPL.

Yes, you can get additional add-on insurance on top of your CTPL or Comprehensive Car Insurance. Insurance providers advise car owners to consider availing add-on package options to cover the areas not included in your CTPL or Comprehensive Car Insurance. You can avail of add-on package options such as Acts of God/Nature, Personal Accident, Medical Reimbursement, Riot, Upgrade, Loss of Use, Roadside service, etc.

Yes, you can insure your old used car. However, most car insurance providers are only giving insurance to vehicles up to 10 years old. You might have a more difficult time securing car insurance for vehicles older than 10 years old. On the other hand, some insurance providers might still accept old used cars but it will most likely come with a higher premium. But don’t worry, you can always check with your preferred insurance company to know if you can still insure your old used car.

In the event that you get involved in an accident, you need to secure essential documents as your supporting evidence in justifying your need to file an insurance claim. Don’t forget to take photos of the incident, and take good pictures of the damaged parts of the cars involved in the accident. You also need to prepare your documents such as the Original Vehicle Receipt, Certificate of Registration, Driver’s License, and your Insurance Policy. In addition, you need to secure a police report about the incident, which will help in fast-tracking your insurance claim. Moreover, don’t forget to get the contact information and a photo of the third party’s driver’s license.

Usually, a car insurance in the Philippines lasts for one year, depending on the policy and on the insurance provider. Car owners must renew their car insurance by contacting the insurance provider on time to avoid hassle and to always have financial protection. Moreover, renewing your car insurance will also allow you to modify your current policy or you may opt to change insurance providers.

Moneymax is an online comparison platform for car insurance, credit cards, and loans. They are also a licensed insurance broker partnered with the top car insurance companies in the Philippines.

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