The 3 Types of Insurance You’ll Need to Know About
There are currently 3 types of car insurance that owners and operators can get here in the Philippines:
Comprehensive Insurance with Acts of Nature
A comprehensive insurance policy that includes an Acts of Nature add-on pretty much covers all the bases. You’ve got CTPL coverage, roadside assistance, own damage, loss of use (when your car’s been stolen or damaged), and financial coverage for damages caused by natural disasters.
But there is a hefty caveat: Acts of Nature is expensive, and can cost an additional 30% to 40%. Meaning, if your annual insurance premium is 15,000 pesos, your Acts of Nature coverage would range from 4,500 pesos to 6,000 pesos, or, a total annual insurance premium of 19,500 to 21,000 pesos. This is why many car owners pass on it. But as the past year has shown, nothing stops Mother Nature---not even a pandemic. Getting coverage to protect you and your car from powerfully unpredictable natural disasters is small change compared to not having the financial means to cover for them.Interested to know more about car insurance prices and types of coverage that best fit your needs and budgets? Assurance.Ph can help you find the answers to your questions, and help you know more about what works---and what won’t---for your brand-new, used, or repossessed car or motorcycle.
Comprehensive Insurance Coverage
This type of car insurance provides better coverage and protection because it covers more than the basic third party liability cover. A standard car insurance package may include a variety of add-ons, including, but not limited to:
- Own Damage add-on coverage
- Roadside Assistance add-on coverage
- Pet Injury add-on coverage
- Property Damage add-on coverage
- Riot and Civil Disobedience add-on coverage
A word of caution: never be be lulled into thinking that “comprehensive” means “complete.” Standard policy packages do not offer all of these add-on coverages, especially the Acts of Nature coverage which provides financial aid for damages caused by natural disasters. This is because the Acts of Nature coverage It doesn’t come cheap: it costs 30% to 40% of your annual insurance premium (see below). The good news is that the Assurance.Ph team can help you figure out the coverage you may need and would fit your budget.
Compulsory Third Party Liability
This form of insurance is the most basic coverage available. It only protects innocent third parties that were involved in an accident with you; it does not cover vehicle damage or bodily harm that happens to you or your passengers in the course of the accident.
Typically, CTPL will range from 340 pesos for motorcycles, 600-650 for private cars, to over 1,300 pesos for heavy trucks. CTPL coverage provides a maximum coverage of 100,000 pesos to innocent third parties, for any of the following claims:
- Death Indemnity - a financial payment of a minium of 70,000 pesos to the heirs and survivors of the deceased third-party
- Permanent Disability - a financial benefit given to the third-party due to loss of a body part and/or dismemberment. Cash amounts may depend on the body part lost: the loss of one eye may be 15,000 pesos; two eyes may be double that amount, or more.
- Bodily Injury - a financial benefit given to the third party for the treatment of injuries, including but not limited to medical services, hospital accommodation, medicines, among others.
Assurance.Ph is your partner in providing protection for your vehicle, property, and passengers in the Philippines. Together with Automart.Ph and Motomart.Ph, we help car and motorcycle owners choose the protection package that suits their needs and budgets, and ensure easy and affordable access online and offline. Chat with one of your Assurance advisors via Viber (0956 302 9631) or email us at email@example.com to know more about the insurance packages that Assurance.Ph offers.