Frequently Asked Questions About Car Insurance

This page answers some frequently asked questions about car insurance in the Philippines. If you were looking for our general website FAQ, please visit the™ FAQ page.


Why do I need car insurance?

There are various reasons as to why car owners and drivers are required to have car insurance, but the most practical is the fact that vehicular accidents happen. Having car insurance ensures that you are financially covered for any liability and damages to you, your car, property, or other people.

Why are car insurance premiums more expensive for younger drivers?

A major part of insurance of any kind is risk assessment; the more likely you are to make an insurance claim, the higher your insurance premium is going to be. Younger drivers, given their lack or minimal amount of experience behind the wheel, are considered to be of a higher risk level as opposed to more experienced drivers.

Why are some cars more costly to insure than others?

The simple fact is that cars are not considered equal. Certain cars are more expensive, and in the event that they are damaged, the price for repairs tends to be higher. Older cars are also considered to carry higher risk, therefore garnering a higher premium.

What details do I need to provide a quote?

When applying for car insurance, the usual things that they would need you to provide are details of both the driver (or drivers) as well as pertinent details about the vehicle being covered, like make and model, year model, plate number and others.


What is compulsory third party liability insurance?

Compulsory Third party Liability (CTPL) Insurance is a state requirement that imposes that all vehicles must be covered against liability for death and bodily injury to third parties before registration and operation.

How do insurers decide to total my car?

A totalled car is a car that is considered to be beyond repair. In insurance terms, a car is totalled if the cost of repairs is almost as much as the value of the car itself.

What is comprehensive insurance?

Comprehensive insurance is an insurance policy that covers almost everything: collision, loss by theft, fire, flood, extended liability and physical damage. If you are applying for one, check your policy carefully.

Should I buy medical payment coverage if I have health insurance?

It certainly would not hurt. Medical payment coverage covers all medical expenses to all involved parties in an automobile accident, no matter who is deemed at fault.

What happens if an uninsured driver hits me?

If hit by an uninsured motorist, then you are most likely going to have to pay for the damages to your vehicle yourself, especially if said uninsured motorist does not have the financially capability to do so. Looking into uninsured or underinsured policies would be a good idea.

Car Insurance Claim

How do I make a claim?

When making a claim, presenting certain documents is required. These include photocopy of the car insurance policy, official receipt of policy, certificate of registration of the covered vehicle, official receipt of registration, photocopy of driver’s license and receipt, stencil of motor number and serial number, police report or affidavit of incident (notarized), repair estimate, pictures of the damage, certificate of no claim of third party vehicles, carnapping report (if that is the case), whereabouts of insured unit and any documentation involving medical transactions.

What is an excess?

Excess is the first part of the claim that the insured shoulders. For example, if your policy has a Php1000 excess, and you need to pay out Php4000 for auto repairs, the insurance company pays for Php3000.

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