Motorcycle Insurance in the Philippines: Guide to Insuring Your Bike
Published: July 8, 2021 | Updated: July 23, 2021 | Posted by: Moneymax | Car Insurance
In 2020, the Metropolitan Manila Development Authority (MMDA) reported 229 fatal motorcycle accidents, a 3.5% increase from the number of cases in 2019. About 198 riders were killed while 10,226 were injured. These figures only show that riding the motorcycle, while convenient, is also risky.
Because two-wheel vehicles are prone to accidents, the need for motorcycle insurance in the Philippines couldn’t be underscored enough. Some believe that insurance policies like this are just an additional financial obligation. But they’re not! They are actually a layer of protection that will help you cover accident-related expenses, which will otherwise empty your wallet.
Here’s a simple guide that will help you understand and appreciate the importance of getting motorcycle insurance in the Philippines.
Table of Contents
- What is Motorcycle Insurance?
- Is Motorcycle Insurance Required in the Philippines?
- What Does CTPL Cover?
- Why Should You Get Comprehensive Motorcycle Insurance?
- How Much Does Motorcycle Insurance Cost in the Philippines?
- Factors Affecting Motorcycle Insurance Price
- Best Motorcycle Insurance Providers in the Philippines
- Tips for Getting Motorcycle Insurance in the Philippines
- Safety on Wheels
- Final Thoughts
What is Motorcycle Insurance?
Motorcycle insurance works the same way other kinds of insurance do. Simply put, it’s a policy that will cover the repair or replacement of your bike in case it’s damaged or stolen. Depending on the type of coverage, it may also cover damage, personal injuries, and third-party injuries
Is Motorcycle Insurance Required in the Philippines?
Yes. Just like with cars, the Land Transportation Office (LTO) requires every motorcycle to have Compulsory Third Party Liability insurance or CTPL.
What Does CTPL Cover?
Compulsory Third Party Liability (CTPL) insurance will cover only legal liability for bodily injury or death caused by the accident. This may protect you from certain liabilities that involve other people, but it will not cover you in case you get injured. This is why you should get the kind of protection that will protect you from a wide range of risks―and that’s comprehensive motorcycle insurance!
Why Should You Get Comprehensive Motorcycle Insurance?
If you’re still hesitant about getting a comprehensive motorcycle insurance policy, just remember that the road is a dangerous place that’s full of uncertainties. You can’t just leave your life and motorcycle to chance.
Here are some of the things that should convince you to get comprehensive insurance for motorcycles.
1. Motorcycles are Easier to Steal
Motorcycles are light and easy to hotwire, which means thieves can effortlessly steal them. Your lock may not even stand a chance against people who have the right tools. If you happen to lose your bike to thieves, you may have to shell out between PHP 20,000 and PHP 80,000 for replacement (both used and brand new). A comprehensive motorcycle insurance policy, depending on the loss clause, may be able to cover this dilemma.
2. Motorcycles are Vulnerable to Damage
It’s obvious that motorcycles can easily sustain significant damage in case of a collision. Both driver and passenger are also susceptible to serious injuries since the only thing that protects them is their helmet. Comprehensive insurance for motorcycles will help you deal with worries and anxieties brought about by your daily trips on the road.
3. Motorcycle Accidents are Costly
When you get in a motorcycle accident, chances are that you will not only deal with your injuries and motorcycle damages. You will also have to deal with the hospitalization of the people involved in the accident and the damages your motorcycle has inflicted on property. If you have a comprehensive motorcycle insurance policy, you will not have to shell out a single centavo (unless the incurred expenses exceed your coverage).
How Much Does Motorcycle Insurance Cost in the Philippines?
Generally, this will depend on the total price of your motorcycle. For instance, if you bought your motorcycle at the price of PHP 50,000, the sum insured value will be PHP 50,000, too. However, you can decide on the amount of your insurance premium based on how much you can pay. If you add coverage, such as personal accident and third-party injuries, then expect to pay a much higher premium.
Typically, premiums start at PHP 300. Thankfully, many insurance companies already offer customized packages based on the budget of their clients. So, you’ll definitely find the one that suits your budget best!
Factors Affecting Motorcycle Insurance Price
Other than the net value of your motorcycle, these things may also affect the price of your comprehensive motorcycle insurance:
- Type of bike – The more expensive the bike, the more expensive the premium will be.
- Riding history – You may be asked if you have already made claims in the past, or if you have been involved in accidents caused by your motorcycle.
- Age – Younger riders are usually perceived to have risky driving behaviors. To mitigate such risks, the insurance company may charge a much higher premium.
- Address – Assessors may subtly ask about the vehicle crime rate in the town or barangay where you live.
- Coverage – Of course, the more benefits and coverage you have, the more expensive your premium will be.
Best Motorcycle Insurance Providers in the Philippines
If you’re looking for a comprehensive motorcycle insurance policy and you don’t know where to start, you may consider the following providers.
MotoMAX, Malayan’s motorcycle insurance, is a comprehensive policy that covers the following:
- Compulsory Third Party Liability Insurance (CTPL)
- Total Loss of Motorcycle (due to accidental damage only)
- Personal Accident Insurance (accidental death, dismemberment)
- Burial Benefit
What’s appealing about MotoMAX is that the depreciation of your motorcycle shall not apply, meaning your bike’s value will be preserved. So, if you declare that your motorcycle’s value is PHP 40,000 and you happen to lose the bike months later due to an accident, you’ll get PHP 40,000.
2. Pioneer Insurance
Pioneer Insurance calls its Motor Protect an all-in-one policy. Here are some of its benefits:
- Motorcycle Repair Benefit worth PHP 10,000 (subject to PHP 2,000 deductible or participation)
- Personal Accident Benefit worth PHP 50,000
- Funeral Benefit worth PHP 5,000
- Hospitalization Benefit worth PHP 3,000
3. New India Assurance
A multinational and reputable insurance company, New India Assurance is known for its comprehensive car insurance policies. But it also offers insurance packages to motorcycle owners. It has 30 accredited shops where you can take your motorcycle for repair, and it has three service centers in Cebu City, Bacolod City, and Angeles City. The company offers two types of coverage:
- Liability-Only Policy: It covers third-party liability for bodily injury, death, and property damage. Personal accident cover for the driver/owner is also included.
- Package Policy: It covers loss or damage to the insured motorcycle in addition to the benefits above.
4. SGI Philippines
SGI Philippines General Insurance Co., Inc. has been serving Filipinos since 1959. It offers not only insurance policies for private cars and company vehicles but also for motorcycles. The company has 36 accredited repair shops and a robust customer support system in over 3,000 branches nationwide. It offers CTPL coverage, third-party damage or loss, and acts of nature.
5. Mercantile Insurance
Under Mercantile Insurance’s Motor Car category, you’ll find comprehensive motorcycle insurance. What makes its motor car insurance appealing is that it also covers other modes of transport, such as motorhomes, mobiles, buses, trailers, and even road-building equipment.
Tips for Getting Motorcycle Insurance in the Philippines
If you want to save on insurance expenses, here’s what you need to do.
Buy a Much Cheaper Bike
If you’re planning to buy a bike and you’re factoring in long-term insurance costs, it’s more practical to go for a more affordable unit. Remember that your insurance premium will largely depend on the value of your bike.
Keep Your Bike Safe
Some insurance companies may offer a discount on your policy if you install security features into your motorcycle, such as anti-theft devices.
Pay for What You Need
You don’t have to get every coverage that the agent suggests to you. Get only what you need, but base that decision on the type of risks you face every day. For instance, get natural disaster coverage if you live in a low-lying area that gets flooded easily.
Take a Motorcycle Course
You may be an experienced motorcycle driver, but it doesn’t hurt to refresh your skills. Furthermore, a driving safety course can be your ticket to getting a cheaper policy, as some insurance companies may offer a discount if they find that you’ve taken such classes.
Applying for Motorcycle Insurance in the Philippines
When you apply for motorcycle insurance, you’ll need to submit the following documents:
- Official receipt (OR) of your motorcycle
- Motorcycle registration document
- Valid government ID
- Photographs of your motorcycle
Once you submit the documents and payment to your Moneymax adviser, your application will be processed right away. The processing time will take around two days, and after 48 hours, your insurance policy is in effect.
Related article: How Much Does Car Insurance Cost in the Philippines?
Making an Insurance Claim
Making a claim on your motorcycle insurance follows the same process as that of making a car insurance claim. You will need to prepare and submit the following documents:
- Policy copy and OR of premium payment
- Police Report affidavit
- Insurance claim form
- Before-and-after photographs of vehicles involved
- Repair estimate
Once you file a claim and submit the documents, wait for two weeks to receive the Letter of Attorney (LoA) authorizing the repair of your vehicle. During these two weeks, inspections will be taking place to confirm the events stated in the police report.
Safety on Wheels
There are numerous reasons some prefer to ride motorcycles instead of cars. They’re less costly to buy and maintain, more fuel-efficient; and they’re also space-efficient. But before you take that bike out and drive away, make sure you’re safe on the road. This means wearing your helmet and other protective gear, as well as getting motorcycle insurance.
Owning a motorcycle is undeniably a more practical and less expensive option than owning a four-wheel drive. After all, a motorcycle is fuel-efficient and much easier to maintain. But you cannot deny that it offers little to almost no protection once you’re on the road.
While you may be a careful driver, you have to take into account that certain factors, such as the weather, road condition, and other motorists’ irresponsibility can get you in an accident. Protect your motorcycle and yourself with a comprehensive insurance policy. This shouldn’t be a big problem these days as a lot of companies offer customizable packages that can fit your budget.
Don’t think of motorcycle insurance as an added expense. Think of it as a shock absorber or a layer of protection!
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-  On Average, 36 People Per Day Were Involved In Motorcycle-Related Accidents Last Year (TopBikes, March 2021)
-  Reformed Compulsory Third Party Liability Insurance (Land Transportation Authority)
-  Motor Protect Insurance (Pioneer Insurance)
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