Choosing the Right Car Insurance that Fits Your Budget and Your Needs

Choosing the Right Car Insurance that Fits Your Budget and Your Needs

All vehicle owners secure some type of insurance for their vehicles.  But not all car insurance policies are the same.  What differentiates one from the other?  We will attempt an answer in this blog.

What is car insurance?

Car insurance is a type of non-life insurance policy that may cover collisions, theft, injury to passengers or damages due to flooding and other Acts of Nature.  Depending on your specific needs and what you want covered, car insurance can be as simple as a Third-Party Liability cover or can be comprehensive, which includes the benefits earlier described as well as medical benefits to cover expenses resulting from a car accident.  Such coverage may include medicines, doctor fees, laboratory expenses or x-rays which the driver or the passengers may need after an accident.

How is a car insurance policy priced?

The cost of car insurance in the Philippines vary depending on many factors.  These may include the age of the car, it’s make and model.  In addition to this, driver experience is likewise a factor. A driver with a higher tendency for accidents may have a higher premium compared to another driver with a longer driving experience and safe driving habits.

As natural calamities tend to be frequent, it is wise to drive a car insured against damages resulting from flooding or natural disasters like storms or earthquakes.  It pays to cover your risks because the cost of repair could be financially debilitating.

What is normally covered in a comprehensive car insurance policy sold In the Philippines?

We have listed below some of the usual benefits included in a comprehensive car insurance policy:

1. Repairs due to own damage like scratches.

2. Repairs due to accidents like car collisions.  It may cover things such as broken windows, body repair, replacement of body parts like bumpers and signal lights.

3. Damages caused by your vehicle to other people's property.

4. Medical treatment and doctor fees, including hospitalization resulting from injuries sustained in an accident.

5. Theft or carnapping.

6. Damages to your own vehicle due to fire, natural disasters and other non-collision events.

What is Third-party liability insurance (TPL) and why is it a different policy apart from my comprehensive car insurance?

Third-party liability insurance (TPL) is a required coverage when you renew your vehicle registration. All registered vehicles have it.  By its name, a Third-party liability policy covers damages caused by your vehicle to other people's property or the injuries they sustain in an accident.  The cost of TPL is regulated by the Insurance Commission and may vary depending on the type of the vehicle.  It’s price ranges from P300.40 for a one-year coverage of a motorcycle, to P610.40 for a one-year coverage for a car or can go as high as P1,250 for a one-year coverage of a medium weight truck.

You need TPL apart from comprehensive car insurance to cover the risks in owning and driving a vehicle. If you are content on securing just the TPL, then it means you are self-insuring your risks and you will pay for the cost of any damage or injuries resulting from its usage.

How to choose the right car insurance policy for you

How to choose the right coverage for your needs?  Consider how you use your vehicle and the risks you and your family are exposed to when using it.  Then decide if you will opt for self-insurance or if you will pass on a part of this risk to an insurance company.

Overall though, when choosing a car insurance coverage, you should consider the value of your car, your driving habits and your budget. For more details on how this works, you may go to  

A brochure on Car Protect is also available for your review.