Do you need car insurance?

Accidents are unforeseen events that can leave you broke. That is why having a car insurance is a must if you choose to own a car.

Car insurance is a requirement when getting a car and it should be with the right level of coverage because it provides financial protection in the event that your car get damaged. It also covers for injuries to other drivers, passengers, and pedestrians.

Accident happen so its good to have car insurance to cover all the fixes and damages that you will encounter.

Is Car Insurance Mandatory?

Yes, it’s mandatory because it covers your expenses in the event of car damage or injuries to other driver(s), passenger(s), or pedestrian(s).

What if I’m not insured?

Even if there’s a lot of affordable car insurance options, there are some Filipinos who don’t invest in car insurance.

After typhoon Ondoy, from 3% penetration rate, the car insurance companies simply had a 5% penetration rate during the aftermath.

Here are some consequences you will encounter if you don’t have car insurance:

  • Cost – You could pay 50,000 to 100,000 pesos when you encounter an accident. If it is more than a scratch, this is not a far-fetched figure. The beauty of having a car insurance company is that you have a peace of mind that someone is going to cover for the damages that would occur on the road.
  • Not able to use the car – Imagine the inconvenience that you could experience if there is a delay in the repair of your vehicle? This is true, especially, if you are still trying to find funds to repair your car. Also, it is also common that you must meet up with the other person who damaged your vehicle to find the most logical solution to the problem.
  • Delays in your business – You’ll be surprised to find out that a lot of commercial vehicles are not yet insured. The sad reality is that a lot of them are operated by small businesses. Could you imagine how much opportunity cost is wasted if you have to wait for the vehicle to be fixed because you are still waiting for funds? The best car insurance companies respond to claims quickly to make the car running as soon as possible.
  • Legal problems – So what if you were at fault and you don’t have the car insurance or even the money to pay for the damages? This could lead to legal problems that could both be stressful and problematic, financially. Reckless imprudence resulting to either damage to property or injuries is a serious offence that you don’t want to face.

What are the Types of Car Insurance?

  • Compulsory third-party liability – is also sometimes called CTPL Insurance, or plainly, CTPL, and is one of the two major types of car insurance. CTPL Insurance is required by the Philippine government as a basic car insurance that all car owners must get. Its coverage is capped at P100,000 and is only applicable to the third party.
  • Comprehensive insurance – Comprehensive insurance is one of the types of car insurance which provides a higher coverage than CTPL. Vehicle owners purchase this plan on top of the required CTPL insurance, as it offers more benefits like a personal accident, roadside assistance, medical and hospital expenses, and even non-collision related events like theft or vandalism to your car.

Now you know the consequences of not having insurance and the type of Car Insurance in the Philippines.

For more information about Car Insurance Philippines visit and you can ask them to help you.

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Introvert, wanderer, blogger, foodie, a hip-hop music writer, and one of the co-founders of a tech start-up company called GigsManila.