10 Car Insurance Myths You Should Stop Believing

Venus Zoleta

Venus Zoleta

Last updated March 08, 2022

When it comes to car insurance, Filipinos worry a lot about the cost, coverage, and claims processing. These concerns are understandable, of course. With the rising prices and hard times these days, you want to get the right coverage at the least cost. And when it's time to make a claim, you want it processed the soonest and avoid the hassle of waiting.

In short, like with any other product, you make sure you're saving money and time on car insurance.

However, some hesitations about getting car insurance are grounded on baseless assumptions. Keep on believing these car insurance myths, and you'll be missing out on the benefits of having your car insured.

If you research and read up on car insurance myths and facts, especially in the Philippines, you'll realize that some of your beliefs about insurance could actually be incorrect.

Do you have any doubts about car insurance? Know the real score and be enlightened. In this article, we dispel the common car insurance myths.

Car Insurance Myths and Facts in the Philippines

Myth #1: Car Insurance Premiums are Expensive

✔️ Fact: Many Car Models are Cheap to Insure

car insurance myths - Car Insurance Premiums are Expensive
Toyota Wigo is one of the cheapest cars to insure in the Philippines

This is a sweeping generalization about car insurance costs in the Philippines. Although insurance premiums for certain vehicle types and models (i.e., luxury cars, sports cars, etc.) are higher, not all cars are expensive to insure.

You'd be surprised to learn that many cars in the Philippines can be insured for as low as ₱11,000 to ₱12,000 per year (equivalent to just ₱1,000 or less per month). This is especially true for most hatchbacks and sedans from manufacturers like Suzuki, Honda, Mitsubishi, and Toyota.

Aside from choosing a car that's cheap to insure, there are many other ways to reduce your premium. Picking your coverage carefully is one of them. You should pay only for car insurance inclusions and add-ons you really need considering your driving habits and risk exposure.

If you still think of car insurance as an unnecessary expense, consider this fact: it's cheaper to pay yearly to get your car insured than to pay out of pocket for car repairs and medical bills after an accident.

🔎 How to Find Cheap Car Insurance Online

Finding cheap car insurance is easy when you shop around using Moneymax. Simply enter information about yourself and your car, and the online car insurance platform will instantly show you quotes from various car insurance companies in the Philippines. You can quickly choose the best price for the coverage you need.

❌ Myth #2: Red Cars Cost More to Insure

✔️ Fact: Your Car's Color Has Nothing to Do with the Insurance Price

car insurance myths - Red Cars are More Expensive to Insure

Absurd as it may sound, people are actually searching for answers online about car insurance myths like, "Do red cars cost more to insure?"

This misconception about red cars being more expensive to insure might come from statistics concluding red as one of the car colors with a higher risk of accidents,[1] along with gray, silver, and blue.

But guess what—car insurance companies don't base rates on whether a car is red, black, or even pink. On insurance application forms (and even request forms for quotes), insurers ask only for the vehicle's year, make, model, age, body type, and other pertinent information. Color is not one of them.

❌ Myth #3: Price is the Only Thing That Matters

✔️ Fact: Car Insurance Coverage and Claims Processing Matter, Too

Of course, the annual premium is a crucial factor when deciding on the right car insurance—after all, it's impractical to buy a policy you can't afford. But the cost shouldn't be the only consideration.

What's the use of a cheap car insurance policy if it doesn't provide enough coverage? You could only end up losing more money when you meet an accident.

When comparing car insurance policies, look not only at the prices but also the types and amount of coverage included, as well as the exclusions and limitations. It's also important to check how the insurance company handles claims processing requests and other customer service-related matters.

❌ Myth #4: Having CTPL Insurance is Good Enough

✔️ Fact: Comprehensive Car Insurance Provides the Best Protection

One of the car insurance myths that many Pinoy drivers believe in is that buying comprehensive third party liability (CTPL) insurance means their vehicle is properly insured. After all, this is what the law requires before you can register your car with the LTO.

However, the protection you'll get from CTPL insurance is rather limited. It covers only the injury or death of third parties (excluding the insured's family and household members) in an accident involving the insured vehicle. The maximum financial assistance is only ₱100,000.

CTPL doesn't cover other liabilities such as damage to the vehicle and third-party property, as well as death or injury of the driver and passengers. For more financial protection against such risks, you need to get comprehensive car insurance.

Get your CTPL insurance online

Myth #5: Comprehensive Car Insurance Automatically Covers Acts of Nature

✔️ Fact: Acts of Nature is Typically an Optional Coverage

Not all comprehensive car insurance policies include an Acts of Nature (AON) or Acts of God coverage. Just because it's "comprehensive," doesn't mean it insures cars against all types of damage such as those caused by natural disasters.

Typically, car insurance providers in the Philippines offer AON coverage as an add-on. It isn't available as a stand-alone policy, which means you have to purchase it on top of a comprehensive car insurance policy.

❌ Myth #6: Personal Car Insurance Covers Business Use

✔️ Fact: Cars for Business Use Need Separate Coverage

If you have a commercial vehicle or a personal car for product delivery (or any business purpose), you need to get business car insurance. Personal car insurance policies don't cover business use, and your claim will likely be denied if the accident happened while you're driving your car for a business purpose.

❌ Myth #7: Car Insurance Covers Personal Items

✔️ Fact: This Coverage is Available as an Add-On

car insurance myths - Car Insurance Covers Personal Items

Comprehensive car insurance policies don't cover valuables such as cash, laptops, and cellphones left inside an insured car that's stolen or damaged by fire or a fallen tree.

You'll have to purchase an optional benefit, called the Personal Effects coverage, to insure personal belongings in your car. If you don't want to pay for that, then avoid leaving your valuable items unattended inside your vehicle.

❌ Myth #8: If Someone Else Drives My Car, That Person's Insurance Must Cover the Damage

✔️ Fact: Regardless of the Driver, Your Insurance Should Cover the Damage Incurred in an Accident

If you lend your car to your brother and he gets into an accident, your insurance provider—not the other person's insurance—will pay for the damage, regardless of who is driving. Thus, think twice before letting somebody else drive your car.

Myth #9: Claims Processing is Long, Tedious, and Complicated

✔️ Fact: It's a Lot Faster and Smoother Nowadays

car insurance myths - Claims Processing is Long, Tedious, and Complicated

This is one of the car insurance myths that no longer hold true in this digital age. Car insurance companies in the Philippines have made claims processing easier and simpler for their customers.

If you purchased car insurance through Moneymax, you can get assistance for processing your claims request and enjoy a hassle-free claims experience. In fact, our clients have commended us for our smooth claims process. We also received a Customer Satisfaction Score (CSAT) of 4 out of 5 for claims.

As long as you submit the complete requirements, the claim period lasts for only three to seven working days.

Myth #10: Making a Claim Will Raise the Premium

✔️ Fact: Insurers Consider Other Factors in Adjusting Premiums

Filing a car insurance claim this year doesn't necessarily result in a higher premium next year. Insurance companies evaluate various factors before deciding to adjust your premium, such as how frequently you file a claim, the total amount paid for your claim, and whether or not you're at fault.

Your car insurance rate will likely remain the same, unless you made a very expensive claim or multiple claims in just one year—which means you are a high-risk and should pay a higher premium.

Final Thoughts

Got more apprehensions or misgivings about car insurance? Chances are, you're a first-time driver and have no experience yet when it comes to getting your car insured. Don't fall for car insurance myths. Educate yourself more about the reality of car insurance in the Philippines by browsing this Moneymax blog.

Get a Free Car Insurance Quote!

Looking for car insurance? Below is a list of top companies in the Philippines and their offerings. Compare your options and get a free car insurance quote from Moneymax!

Car Insurance Company Maximum Total Sum Insured CTPL Coverage Own Damage & Theft Coverage Acts of Nature Coverage Death / Disablement Coverage
FPG Insurance
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₱4 million
Malayan Insurance
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₱7.5 million
The Mercantile Insurance Corporation
mercantile insurance logo
Get free car insurance quote
₱5 million
OONA Insurance (formerly MAPFRE)
Oona logo_horizontal with insurance_purple
Get free car insurance quote
₱5 million
PGA Insurance
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₱3 million
SGI Philippines
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₱5 million
Standard Insurance
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₱5 million
Stronghold Insurance
Get free car insurance quote
₱3 million

Source: [1] Here's How Different Car Colors Affect Your Chances of Getting into an Accident (Gibson, 2019)

Venus has almost 20 years of combined experience in content marketing, SEO, corporate communications, and public relations. Most of her career was spent creating informative articles on personal finance and digital marketing. She also invests in stocks, mutual funds, VUL, and Pag-IBIG MP2. Venus graduated cum laude with a Journalism degree from the University of the Philippines Diliman. A hardcore Hallyu Tita, she loves bingeing Korean shows on Netflix while bonding with her cats. Follow Venus on LinkedIn.


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