Published: August 5, 2019 | Updated: June 6, 2020 | Posted by: Moneymax | Car Insurance
For any vehicle owner in the Philippines, car insurance is a necessity. In fact, a Compulsory Third Party Liability policy is mandated by local law. This means that if you are to register a car with the Land Transportation Office, that car needs to be insured to be valid for operation.
However, a CTPL policy covers just a certain aspect of your insurance. It only covers the death or injury of a third party and not the damages made on your car. This is why it is important to have a comprehensive car insurance policy. Apart from protecting yourself and your vehicle, a comprehensive policy covers your passengers from several road-related risks and hazards.
Buying comprehensive car insurance can be easy if you compare your options and be prepared with the requirements. Take note of the steps and the following comprehensive car insurance requirements for a hassle-free process.
Table of Contents
If you already have a CTPL policy, odds are you already have a provider. But as you can generally purchase insurance through the LTO, a comprehensive car insurance policy may be an entirely separate thing. If you aren’t sure which company to get it from, there are insurance comparison websites like Moneymax to help you along.
One thing to remember is that your premium will depend on the make, model, and age of your car. Older cars may have higher premiums than newer ones owing to their Fair Market Value. Note that some insurance companies reject cars above ten years old, as it may cost too much to repair.
Ask around as well, you may have friends who have similar circumstances and can help you along with the process.
When you start the process, there are several ways you can get in contact with an insurer. One way is to visit their office, and another is over the phone. When you make inquiries, agents will usually give you a quote for your policy’s premium. This will depend on the make and model of your car – otherwise known as its book value – calculated against depreciation for wear and tear, and its Fair Market Value. Your premium may increase based on the covers you choose to include in the policy.
Some providers may require physical copies of your Original Receipt and your Certificate of Registration upon application. Others may ask for digital files.
Once you’ve submitted the documents, the next step is for you to receive your policy. A digital copy is normally issued to you via e-mail, and then the hard copy delivered to the address you declared during the application process.
Your terms of payment may also be determined at this stage. It is advised that you pay your premium in full to avoid any issues when you need to file a claim.
Some things you may want to take into consideration when selecting your insurer are their financial capability and stability as they have managed through crises and tend to offer more bang for your buck. Like any other undertaking, don’t forget to read the fine print and take up any terms you find disagreeable with your insurer.
Remember that a comprehensive policy doesn’t cover everything so choose your coverage that fits your needs. It is ideal to have the Acts of Nature and Personal Injury cover to start with as a precaution.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.